We’ve taken a different tack (and of course, it all depends on one’s financial means). We provided a manageable but by no means lavish monthly allowance, enough to allow for a few treats, the ability to order out occasionally but not regularly, go to the movies now and then, etc. as The allowance was such that they would need to learn to pick and choose what they wanted to do to make it last all month, which necessitated passing on things at times. If they spent it early, they’d have do without. Any money they earned through work or received as gifts was theirs but we encouraged them to open accounts and save and invest. Both have very good savings habits now and are building investment knowledge and a little acumen.
We will fund the school spending account with what DS needs to cover books and any required fees and some cushion – intended to cover things like school supplies that he ends up needing to buy, postage, toiletries (though I am loading him up with what I hope will be sufficient), plus some intended for fun (outings, food at the student center) – but he will fund whatever extra he wants. He’ll have to budget the student center expenses (i.e., food) and the like. He’s been doing extra work at home to “earn” amounts we’ll credit to him. We’ll also have to open a local bank account for him so that he’ll have access to cash for off-campus shopping and excursions, which we’ll fund with some cushion but it will mainly be from his contributions (earned money and gifts). We have access to see exactly what he’s spending money on, so he’ll have to figure out how to budget but we’ll be able to provide guidance.
“We’ll also have to open a local bank account for him so that he’ll have access to cash for off-campus shopping and excursions”
I recommend looking into opening an account at a place like Fidelity or Schwab. Most banking is done online these days so doesn’t need to be local. Both of these firms offer no fee checking that includes reimbursing for all ATM fees charged at any ATM here or abroad, as well as no or very low currency transactions fees. Depending on the child’s age, it might have to be a joint account with a parent rather than an individual account. Another benefit is that the account can stay with your child through college as well.
@doschicos – Thanks for the suggestions. The school pointed us to the local bank in the same communication where they provided information on the school spending account, and I put the bank account on the back burner to focus on closer to when school starts, so we haven’t gotten as far as the details. I want to look at other options, including a separate account at our existing bank. The task for this week is to try on all the clothes and figure out what fits for fall and what we still need to buy 