Poll - Monthly allowance

[marvholly]

$30/week for me. Covers ALL my personal expenses: clothes, gasoline, haircuts, mani/pedi..........

I do take an additional monthly amount for entertainment/eating out of $25.

NOTE: I am retired so those $$ coffees, lunches out w/co-workers, drinks after work are things of the past (then again, so is a paycheck).

 

[jguild2120]

No allowance. We live on $12,000/month and buy whatever is needed. Out of that I spend about $1,000 a month on my hobby (fine art photography).

 

[braumeister]

We don't have allowances. We buy what we want, when we want. Thankfully, we don't have expensive wants.

Here too.
In fact, I go even further. One of my budget categories is a catchall. All cash taken out from ATMs is accounted for here, but I don't track what the cash is spent on. The same category also includes all dining paid for with credit cards and all "entertainment" items like tickets to events, etc.

The whole "cash/dining/entertainment" category amounts to about 12% of our total annual spending, so it's not a huge amount. Breaking things down to finer and finer slices of spending just isn't worth my time.

 

[frayne]

Just something we've always done and it works for us. Only use CC for gas and on line purchases, everything else is paid for with cash.

 

[Live And Learn]

One problem I had with the poll part is that I see an "allowance" and cash spending as too separate things.

That is, cash is a method of spending, but isn't the category.

It is unclear in the poll if you are asking how much "cash" each can spend each month or if you are asking more how much each can spend each month that doesn't have to be accounted for.

We spend very little cash, but each gets $200 in the spending money category (most of which is spent by credit card).

To us, this avoids any arguments or even discussion. So, if DH wants to [-]waste[/-] spend $50 on something that I think is useless, I don't really care since it comes out of his spending money. And, vice versa of course.

To clarify - I was talking about "spending money". Our allowances are mostly spent via credit card, but when I categorize the expense it goes in as "DH Allowance" or "DW Allowance".

We do exactly as you do, and the rule is that neither one gets to opine on how the other spends their monthly allowance.

 

[Katsmeow]

To clarify - I was talking about "spending money". Our allowances are mostly spent via credit card, but when I categorize the expense it goes in as "DH Allowance" or "DW Allowance".

We do exactly as you do, and the rule is that neither one gets to opine on how the other spends their monthly allowance.

OK, so we are talking about the same thing.

I find that doing this has two benefits.

First, it lessens any potential conflict. There have been times that we haven't had the spending money category. But, then I spend way more on certain categories than DH does (books for example). And, he spends more than me on other categories. For example, just this year he spend spent several hundred dollars on a house designing program. If this came out of budgeted money for software for us collectively I would have been upset (he says he will never move, he just got the software for fun). But, since it came out of his spending money, I see that money as already having been "spent" since it is in his category so I don't care how he spends it. It has no effect on me whether he spends it on that software or on books or at Starbucks.

Second, it provides a vehicle to control certain discretionary spending. Unlike some people here, we could easily spend way more money than we can safely spend. I have lots of things I could spend money on and have expensive tastes. Now, I can happily spend much less than that but I do need to watch what I spend.

One of things we put in spending money is computers. DH and I both like high end computers and can spend a lot of money on them. By having that come out of spending money, I know that each month I need to set aside some of the spending money for future computer replacements (currently I have $3500 set aside from saved up spending money which I will spend on a new computer in about a year and may buy a new iPad next year as well).

So, by setting a spending money category that is high enough to cover the cost of a new computer every few years I make sure that I don't overspend on it since things like my books also come out of the same category.

 

[Live And Learn]

Katsmeow - we also include computers and other electronics in the spending money budget. Another item that comes out of the allowance is alcohol. I agree with you that it both controls expenses in certain categories and controls potential arguments !

 

[Katsmeow]

I answered this as $101 to $200 a month, but it is actually a bit more complex than that. I put $200 in each spending money category for each of us each month.

But throughout the year there can be other money that goes in there. For example, we get cash back from our Amex Blue Cash Preferred Card. We first use that to pay the fee for having the card. Then, the remainder we give 1/3 to each of our spending money categories and 1/3 goes to our Dining Out category.

Also, if we get "found money" during the year we sometimes put some of that in spending money. Back when we were both working we allocated some part of annual bonuses to spending money (a relatively small amount). Or, if we got some money that was totally unexpected and unbudgeted and not tied to a specific asset, we would usually allocate some part of that to spending money.

At one time we included personal care -- clothing, hair, makeup, etc -- in this category and the amount was more. But, DH and I spend quite different amounts on those categories. I get my hair colored every month and he gets a haircut every few months. He was building up huge amounts of unspent spending money and I was always short of money since so much of it went to my hair. We finally broke those out as separate categories.

 

[jkern]

$ 300/month - Cash in pocket spending money (entertainment, eating out, etc..)
$ 275/month - Golf

 

[mickeyd]

I have not been saddled with allowance issues since 6th grade. DW and I both have ATM cards and draw out whatever we need, whenever we need it. Still, we seldom use cash at all but seem to favor our CCs.

 

[38Chevy454]

I don't do strict budgeting, and the spending is whatever is needed/wanted. I guess it is approx $100-200/mo per person for me and DW, that is what I put in the poll. For me it covers lunches (still working....) and some small shopping. Much of the small shopping is actually for house, yard or car stuff so it is not personal in that sense. I spend more cash than DW, and also carry more on me than she does.

I have never been a formal budget person, but do keep track of expenses and spending in general. Just not to the detail of what many of you do.

 

[Amethyst]

An adult "allowance" is not a concept in our household.

Every so often, I check both adults' wallets to be sure there is at least $20-$30 cash in there, and replenish as needed. Mr. A. can go months without spending a cash dollar.

We put as much as possible on the credit cards, and write checks when required (taxes, contractors, contributions).

Amethyst

 

[audreyh1]

When we are getting low on cash, maybe about every 3 months or so, we go to the ATM, withdraw some cash, and divvy it up to replenish both our wallets.

 

[Ronstar]

I have always taken money out of checking about $200 at a time. When I run out, I take out another $200. When I was working, I went through $400-$600 in cash per month. Now I'm spending around $200 a month in cash, but in use my credit card whenever possible.


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[Katsmeow]

I have not been saddled with allowance issues since 6th grade. DW and I both have ATM cards and draw out whatever we need, whenever we need it. Still, we seldom use cash at all but seem to favor our CCs.

I think she is using the term allowance but really means a spending money budget category for certain discretionary spending. For us, we use it for personal discretionary stuff such as books, computer programs, online subscriptions, individual hobbies, that kind of thing. None of these things are "needs" and we find that it reduces conflict and helps planning better.

We put electronics in there because they are a combination of need and want and find that we control overall spending better doing it that way.

That said, the amount for the category is something we come to by agreement and it is subject to change and from time to time we do change it.

 

[scrabbler1]

Am I seeing a pattern in that those of you who reply "yes" with explanations tend to be in 2-person households (i.e. married couples) while those (like me) who reply "no" tend to be in one-person households? That is, the concept of an allowance is used by couples to keep themselves and each other in check?

 

[Katsmeow]

Am I seeing a pattern in that those of you who reply "yes" with explanations tend to be in 2-person households (i.e. married couples) while those (like me) who reply "no" tend to be in one-person households? That is, the concept of an allowance is used by couples to keep themselves and each other in check?

That is often the case.

To me the term "allowance" is sort of a misnomer. It is really a budget category.

If I was single then I would handle the same issues by having a category for books and a category for computer and a category for Gaming. Right now I categorize those as my Spending with subcategories for the specific.

DH on the other hand has a category for his Spending and he has some of the same subcategories but he has his distributed differently and he has some subcategories I don't have.

The broad Spending category for each of us is meant to basically even out the personal discretionary spending for each of us (that is we each get the same gross amount) while recognizing that each of us will spend it differently. So I might spend $50 of my $200 a month on books while DH might spend $10 on books, etc.

 

[rodi]

DW has a variable allowance, and because I'm such a good planner it exactly matches her actual spending each month. Same for me.

This - except in my case it's DH with the variable allowance.

LOL

We don't have expensive hobbies and we spend what we want - if we're starting to overspend I comment on it, and we both reign it in. But we're not big spenders so that happens about every 2-3 years.

 

[rodi]

I should add a couple more things.

DH and I have a rule that purchases more than $100 (not groceries) get mentioned to the other immediately. And purchases more than about $300 get discussed prior to purchase.

The other thing to mention... I have kids at home. They don't get an allowance but they do earn money that is kept track of in the "conti" book. (Italian for accounts.) They earn for chores, grades, big labor projects (like our driveway project.) They ask for withdrawals - usually to make online purchases. One has excellent credit and a great work ethic - I'll let him go "negative" up to $50. The other spends as soon as he's got it- and is less willing to earn $ to pay me back if he goes negative... so I don't allow him to. I don't question their purchases too much - except to make sure they're age appropriate. They both earned big bucks on the driveway paver project - older son was able to purchase his "dream" gaming computer. Younger son purchased an x-box.

They've asked for allowance - but I want to tie the "work = money" concept in their head.

 

[daylatedollarshort]

We have a general budget we make at the beginning of the year. Besides the big ticket expenses it includes money for restaurants, hair cuts, clothes, entertainment, hobby clubs and general household spending. We don't really track spending to plan as it is pretty easy to stay under budget. We track our net worth and after tax cash in total and as long as those are more or less what we expect each month the detailed spending doesn't really matter.

We try to put as much as we can on 2% back credit cards so we don't spend a lot of cash.

 

[Dreamer]

I answered that we don't have an allowance. We have tried that in the past and it did not work out well for us. DH spends more than I do, but I realized that he enjoys material things more than I do and he enjoys eating out more than I do also. He has never asked me to account for any money that I do spend and has tried to encourage me to spend more previously. I do not enjoy shopping or eating out for the sake of eating out. I have spent more than DH traveling with friends and family.

 

[fritz]

We've never used the allowance concept, but always used a budget. We track CC purchases, along with cash withdrawals (don't track what's purchased with the cash). As long as the total cash withdrawals and CC purchases come in at or under monthly budget - we can absorb those months that occasionally go over for one reason or another. Retired for 5 years now and made a few adjustments to the budget at first to get it to where it's at or below the budgeted amount pretty much most of the time. Keep in mind that for most months, the budget varies. We add to a month's budget for anticipated travel, winter snowbirding, holiday purchases, etc. Only pull cash from our Credit Union/its ATMs or a shared Credit Union in Florida. Cash has generally been a pain in retirement as we usually run short at the most inopportune time (Murphy's Law). Wife usually takes back the cash she gives me. I just hold it for her, as I don't usually spend any of the cash she gives me.

 

[brett]

In 40 years of marriage we have never had his and hers bank accounts or spending accounts. The only directed accounts have been those necessitated for income tax purposes.

The same for our spend (almost all is reward credit card spending). We don't keep track of who charges what. No point, and it would not alter our spending patterns.

We do not even keep a monthly budget. We keep track of cash payments and cash withdrawals from our bank account on a monthly basis in order to validate our annual spend. Our monthly spend can vary wildly if we are in the middle of planning a trip and pre buying things like airfare, cruise fare, hotels, car rentals, etc. which we often do.

 

[audreyh1]

Am I seeing a pattern in that those of you who reply "yes" with explanations tend to be in 2-person households (i.e. married couples) while those (like me) who reply "no" tend to be in one-person households? That is, the concept of an allowance is used by couples to keep themselves and each other in check?

I see several couples households (like us) responding here that don't do an allowance. We don't argue about ending money. It seems to be a useful technique for couples that sometimes do argue about it.

 

[Live And Learn]

I see several couples households (like us) responding here that don't do an allowance. We don't argue about ending money. It seems to be a useful technique for couples that sometimes do argue about it.

It's not so much about "arguing" but questioning the others choices in spending. With the "allowance" if he wants something that I consider "a waste of money" he can save up for it. It also keeps DH from buying a $300 box of cigars vs a $100 box !