This is an issue I’ve been having with my brother. I’ve realized that he seriously has no understanding of the value of a dollar. He lives by the motto, “If you got it- spend it.”
Charlotte and I created a monthly allowance to help squelch the problem of the twins always asking us for things and that feeling we both get when we have to say that dreadful two letter word, “No”.
Things that I’ve noticed about the twins spending habits since this started:
My littlest sister is very financially savvy. She actually has a list of all the things she wants to buy saved on her computer. When she gets her allowance she may buy something from the list but most times she waits to see what happens that month. She’s cut down on daily small spending like walking home from school instead of taking the bus- which has been both economical and healthy. Once the month is almost over and she has been to coffee, movies, etc. with friends, then she buys things and even leaves a little in reserve for when unexpected things come up. It’s so impressive- I could learn a thing or two from her.
My little brother has the opposite approach. With in moments of me giving him his monthly allowance he has spent the lot of it. This kid just spends it right away. He’s not concerned about anything coming up out of the blue. His birthday money gone within days on food after school because he didn’t want to make his lunch. I don’t really know what to do.
Now he lost his phone and he needs a new one, but he doesn’t have the allowance to make it happen and I can’t have him out without a phone and we’re barely getting by with our monthly bills as it is- in fact we are already $200 short/month (the storage unit is in the process of being cleared out).
My idea is change his allowance to a weekly pay out instead of monthly. This way it forces him to save up for those big things. I need to break his lack of respect for money. He can’t just spend it with the idea that more is always coming. It’s not a healthy way of looking at things.
I’d love some ideas or references if you have any.