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Moms with Teens Moms with Teens

Saving money

Posted by on Dec. 7, 2012 at 8:39 AM
  • 19 Replies
If your teen has a job, do you require that they set some of their pay aside for savings?
My son wants to get a job, and I told him that if he did, he had to save 50% of his check for a car or college, 25% for bigger things that he wants like extra shoes, video games, cell phones, etc, and he could have the other 25% for spending money. Is this unreasonable? How much do your kids save?
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by on Dec. 7, 2012 at 8:39 AM
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Replies (1-10):
atlmom2
by Susie on Dec. 7, 2012 at 9:24 AM
When dd started working part time at 18, she saved $14,000 in 3 years. She had a huge down payment on her new car. Yes, they have to save. She has a Roth IRA also. Now she is in her work 401 K also. We did not MAKE her save. She did it.
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annie2244
by Silver Member on Dec. 7, 2012 at 9:26 AM

It might depend on how much he's making in an average week. I think an amount of pocket money is healthy and fun, and beyond that contributes to wasteful materialism, not healthy, doesn't add to the fun in any real measureable way (similar to the study that's been getting alot of press that as income rises, so does happiness, but only up to a point, after which greater income does not yield greater happiness).

For example, if he's only working 4 hrs/wk, that's a take home pay of probably $20. Your arrangement would leave him with $5 of spending money. Hard to have fun on $5! Conversely, if he was working 15 hours/wk, that's $75/wk take home pay. Way too much money to be blowing on nothings, and your 25% might be about right.

We shift each teen year a greater portion of their fun and clothing allowance from deriving from our labor to deriving from their labor, such that by freshman year in college, we are no longer giving any allowance or paying for regular clothing, their special shampoo desires, etc. (Although I'm sure we'll do some shopping before September and January when they are home on breaks, so it really is going to be not that draconian a forey into financial semi-self sufficiency). So, you may want to do some shifting of this responsibility as part of the configuration of what should be done with his earnings.

And if his savings is starting to add up to alot, you may want to put it into an account under your name, as colleges expect a much greater portion of his account to go towards tuition than your account.

Our 14 y/o made some pretty good checks this summer as a soccer referree. We talked about a percentage system, but never really got around to enacting it, partly b/c her work was so sporadic, and b/c she of her own volition put about 2 out of every 3 checks into her personal college living account. She is still on a pretty nice weekly allowance from us that includes a clothing allowance, (it doesn't decrease till 16 when we really do expect our kids to get a part time regular gig somewhere), so she also didn't need these checks to be a pretty happy camper, partly b/c she is very low maintenance, not materialistic, not wanting to go eat out with her friends very often.

Our 16 y/o will need a percentage system whenever she gets a job, b/c she is materialistic and also loves to go out to eat with her friends, arranges gatherings. But she's got health issues that prevent her from school attendance a couple days/wk, so a job is not on the horizon.

Once our kids are in college, no percentage system. We pay for room,board, tuition as long as you are passing, up to a maximum. If you choose a college that will exceed our max, you'll need to take out loans for the extra.  You pay for everything else. You need to work enough to pay for that, but not so much that your grades are falling below the threshold for concern. And we repeatedly discuss the pernicious evil of debt, such that both I think will steer clear of that.

fantasticfour
by Grumpy on Dec. 7, 2012 at 9:40 AM

They have to put 50% in a savings account they cannot touch until they move out/graduation/18 years old, which ever comes LAST.  The money is in my savings accounts actually which are high interest savings accounts. 

annie2244
by Silver Member on Dec. 7, 2012 at 9:50 AM


Quoting atlmom2:

When dd started working part time at 18, she saved $14,000 in 3 years. She had a huge down payment on her new car. Yes, they have to save. She has a Roth IRA also. Now she is in her work 401 K also. We did not MAKE her save. She did it.

It's cool that she's starting the roth so young. We've told our kids we'll match their roth contribution while they are making enough money to have it be a consideration, yet not enough to be realistic that they'd max out on their contribution on their own.

vlynn.iowa
by Bronze Member on Dec. 7, 2012 at 1:36 PM

Yes, 40% to savings and 10% to charity

bizzeemom2717
by Jen on Dec. 7, 2012 at 3:01 PM
I've never made my kids save, they have always done so on their own with their part time jobs. Last summer my DD watched our neighbor's children 3 mornings a week, she made $75 a week and not needing a clothing, basic cost of living allowance ect most of it did go into her savings account. I would never force my children to save a certain amount and can't believe the patents who take their kids money and put into their own accounts, really??? But then again I've never had kids fight it so idk.
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Barabell
by Barbara on Dec. 7, 2012 at 3:57 PM

I don't make my son do it. He does it on his own to save up for bigger items.

Zamaria
by on Dec. 7, 2012 at 4:08 PM
I'm not forcing him exactly, just making it a general rule unless he has a good reason to not save because he wants to do something specific. And I don't blame the parents who put their kids money in a high interest account under their own names! They probably earn much more interest than they would with their own accounts. It's not taking their money. It's helping them save. Taking their money would be spending it or not giving it back to them.


Quoting bizzeemom2717:

I've never made my kids save, they have always done so on their own with their part time jobs. Last summer my DD watched our neighbor's children 3 mornings a week, she made $75 a week and not needing a clothing, basic cost of living allowance ect most of it did go into her savings account. I would never force my children to save a certain amount and can't believe the patents who take their kids money and put into their own accounts, really??? But then again I've never had kids fight it so idk.

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Zamaria
by on Dec. 7, 2012 at 4:10 PM
He needs to save because he will need money while he's in college for things that he wants. We will pay for necessities, like clothing, meals, etc. but he will have to buy his own gas and snacks and extra clothing. He will also be paying for part of his first car. We will match whatever he saves, so if he wants a good car, he needs to start saving now. I don't want him being broke when he's out on his own.
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bizzeemom2717
by Jen on Dec. 7, 2012 at 4:22 PM
Oh ok, he's going into college. I thought he was closer to my DD's age she's a HS freshman. My ds is a soph in college and living his second year in the dorms. Yes, he will need some funds for spending money in college but part time jobs aren't that diff to find on campus

Quoting Zamaria:

He needs to save because he will need money while he's in college for things that he wants. We will pay for necessities, like clothing, meals, etc. but he will have to buy his own gas and snacks and extra clothing. He will also be paying for part of his first car. We will match whatever he saves, so if he wants a good car, he needs to start saving now. I don't want him being broke when he's out on his own.
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