Canadian Personal Finance Blog

So in an article from last May, I outlined how I allocate my 3 daughters their weekly allowances. The simple explanation is that I have taken advantage of the free transfers between accounts that I have signing authority to transfer the money directly to their accounts. What I have learned now from running this experiment for about 3 years is:

Advantages:

1. I don’t forget to give them their allowances, which was the major problem I had.
2. The girls learn how direct withdrawal works
3. Some fiscal concepts like saving become obvious, which is good. I can also transfer baby sitting payments to my oldest, easily as well.
4. They are using their money to buy things like gifts for friends and their own clothes, which was not the plan, but I applaud every time they do it.

Disadvantages

1. Kids don’t see the money, so forget that they have it.
2. They have not picked up the “checking your monthly balance statements” the way I hoped, they rely on me telling them how much money they have.
3. Money seems to be invisible to at least one of the children.
4. The cafeteria at the high school takes direct withdrawal, so they use their allowances to buy lunch a little too often (IMHO).

All in all, I think the experiment is working. I think I need to sit down with the girls and discuss a few of the finer points I’d like to see, but I think it is working.

I am now in search of any other interesting experiments like this to teach my kids more about money. No, I am not giving them access to their RESPs, that is not going to happen until they need it! –C8j

Think of that amount of money flying through cash registers (or worse still onto credit cards) all over the States. This number staggered me, was all this money spent on things that were needed or things that were wanted? Think about that number, it’s staggering. How is it possible that we have a society that can squander (ok, a little dramatic, but certainly waste) $8B on a holiday that is to commemorate Christ’s birth (don’t get all P.C. on me it’s Christmas, all right).

What would Christ think? That’s a darn good question. Ask yourself that question, and see if you can figure out an answer for that one, because I can’t right now. Yes, I know I am going to blow a lot of money on Christmas, but I am going to try to at least give some moneys to charity. Who can you give to, instead of buying a new MP3 player? My parents used to give to the Brewery Mission in Montreal, I never asked why, but they did. I give to charities that mean something to me, but you should give to charities that “speak” to you.

What would Jesus do, if he had $8 Billion? Darn good question. –C8j

Let’s wrap up this week’s topic of the essential and permanent lifestyle changes that are going to be needed to be successful in your debt reduction plan.

In hindsight, you’ll thank yourself for making these changes, but during it, you most likely are going to really hate what you are doing, and it is going to be annoying at best, if not painful at times too. Remember how long it took you to build up this debt, it is not just going to evaporate like the morning dew, you are going to have to work at it, every day, and some days are going to be better than others, but it is a journey, not an end point. Your goals are what you must keep in mind, every time you grumble about how you wanted your morning cappucino, or not buying your wife the diamond pendant for Christmas for $1000 (and instead putting that money on your line of credit).

Keep at it, you can do it, if you give yourself a chance, but remember if it was easy, then nobody would be in debt, now would they? -C8j