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Teaching #1 Son

March 12th, 2008 at 12:50 am

My 20 y/o son is in college full time and gainfully employed part time (great benefits including free health insurance) while living in our home. I am paying for 75% of his tution. He is responsible for his 25% tution, books, miscellaneous expenses, clothes, car insurance and a nominal share of rent. His part time job consists of 23 - 34 hours a week at $12 in hr plus monthly sales commissions. His monthly sales commissions has been averaging about $1000 - $1800 a month. He contributes to his employer's 401K of 5% and a $25 a month Roth IRA (plus an extra 10% from commission check is placed in Roth).

The problem is that he has no control of his debit card! He has overdrawn his checking account 3 times last month (a total of $60 overdraft fees). I lent him the money and he paid me during his next payday. We had a long discussion about his love of the debit card. He said it was easier to pull out the card to spend without thinking about how much was in his account. I had him set up e-mail notifications for his checking and savings accounts. I also assisted him with a spending plan and set up the envelope method for his money.

I think it's working because he actually had money for his spring break trip this week without raiding his savings account. He even left his debit card at home so he wouldn't be tempted. Maybe, I should of had this discussion with him prior to the overdraft mess. Oh, the joys of parenthood!

3 Responses to “Teaching #1 Son”

  1. aevans1206 Says:

    Good job in talking to your son! Had my parents simply sat down to teach me about finances, maybe I would've had a better handle on money. Kudos to you, mom!

  2. lost in debt Says:

    That's great, my son is still a senior in high school and money flows though his fingers like water ... this is going to be a hard one to teach. I've never seen money disappear so fast and he doesn't have a job still .... he is planning on getting a welding job as soon as school is out. He has been in a welding program for two years at school and I have told him he needs to work for one year in the field to see if he is serious and then I'll send him to a trade school for the various certifications he will need.

    I'm making my son wait because he doesn't seem to be mature enough to be responsible with money or with homework - this year has been a struggle and I'm constantly on top of him; pushing and pushing - he is a slacker and college is a priviledge that is earned ... he hasn't shown me he is serious yet.

  3. luxlivingfrugalis Says:

    Sounds as if your son is doing well.

    I have a CashHappySon who was a cell phone texting & debit card demon. He got demoted back to not having either one for awhile. It seems to be helping SOME!

    Ohhhh, there are consequences????? Umm. Yeah, there are!

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