Last week a friend's daughter graduated from high school. We celebrated with the family following the ceremony, and caught up with some old friends we haven't seen in long time.
On the way out, I said to the graduate's father, "be sure to bring those presents inside--there are some very valuable envelopes there." He said of course he would, but added that his daughter doesn't really seem to know the value of money, "How do you teach them the value of a dollar; I have no idea?" He went on to tell us how, when she needs money, they give her money; twenty-dollar bills seem to fly out the door with her daily. He knew this approach was not instilling a great sense of fiscal responsibility in his daughter.
On the drive home, I remembered the rather complex financial system my mom set up in our household while I was growing up. We didn't have a whole lot of money, but my mom was good with it. I either inherited that gene from her, or the system she worked out set me up for a financially savvy future.
On the 1st and the 15th of each month, when my dad got paid, I got an allowance of $15. Mine was one of the larger allowances among my friends, but from that allowance, I was expected to purchase everything I would need (including clothes--which most of my friends received on top of their allowances). If I spent my money on candy, records, movies, or fast food, I was on my own. If I spent money on clothes though, my mom would match me dollar for dollar up to $15 per month.
It was kind of a clothes 401(k) matching program. I usually spent my money on clothes. I do remember, though, having enough saved to buy an $80 stereo at Thrifty's Drugstore at one point. I think I was a pretty good saver.
When I was 15, I got a job at H. Salt Fish and Chips. Everyone I knew had a job at some fast-food joint. Even at $2.65 an hour, the money added up a whole lot quicker than an allowance (which I no longer received, since I had a job). I really saved a lot during that time. I liked having the money so much, I hardly ever spent it on anything (except, of course, clothes).
I don't have kids, so don't really know whether the allowance system still exists. I do know that none of my friends' kids work during the school year (maybe a couple have summer jobs). I think nowadays parents want their kids focusing on school work rather than fast food work. This may serve them better in the long run, college-wise and career-wise, but probably at the expense of learning a little financial savvy.
Not to mention never getting to have the experience of coming home smelling like greasy fish!
I worked only on the weekends in high school (graduated 2001, so not *too* long ago). I didn't get an allowance really ever, and made about $50 working one day a week on the weekend. So with that $200 a month I had to buy everything I needed (clothes, gas, etc). Sometimes school supplies $$ had to come from that too, depending on the current family financial situation. Occasionally I had to buy my own groceries with it as well. Unfortunately most of that money ended up going towards my car (it needed new tires, then something else, etc), it was a huge money suck for all the money I saved. But, after nearly 2 years of working just that little bit in high school (the summer after my junior year I worked a bit more in that summer) I still went to college with nearly $500 in my pocket that I had saved myself. It was all the money I had to my name! Not a lot, but it bought me nearly two semester worth of books. Luckily I immediately got a job in college and made significantly more per month. :)
Posted by: jennifer youngblood | June 19, 2008 at 09:07 PM
Sounds like you got a good head start and are well versed in the money management lessons gained from scrimping and saving. Good for you!
Posted by: Retired Syd | June 19, 2008 at 09:31 PM
Yeah, I wouldn't say I was typical of my peers though. It's sad to say that in my (anecdotal) experience, the kids from the well off families didn't need to learn the value of the dollar, so they didn't...
Posted by: jennifer youngblood | June 19, 2008 at 09:57 PM
For me it was the smell of movie theater popcorn. It seems better, but anything is tiresome day after day. :)
The only significant fight I ever had with my parents as a teenager was when they wanted me to quit my job for my senior year--so we compromised on weekends only during the school year!
Great post!
Posted by: Angie | July 16, 2008 at 05:35 PM
Angie: I would have KILLED for a job at a movie theater--lucky you!
Posted by: Retired Syd | July 16, 2008 at 07:38 PM