Thank you all for the advice. BWS was right, the $140 a month will be for
her clothing, extra curricular activities and school expenses not just
pocket money. I have no experience with teenagers and to have one suddenly
thrust upon me I have probably been more strict than I should. I definitely
won't be giving her $140 in cash all at once, yet.


C.K


"C.K." <CK[at]BELLSOUTH.net> wrote in message
news:Adekb.7599$ft2.5618[at]bignews3.bellsouth.net...
- quote -

"Sgt. Sausage" nobody[at]nowhere.com

<< <i> $140 "allowance" seems rather steep. Granted, inflation and all, but
when
I was 14 (20 years ago) I earned (that's right, earned -- had to work for
it) a 5$ a week allowance.

I think that $140 a month is a bit much for a 14 year old kid, and most
kids today would just end up blowing it on stuff they don't need. </i> >
When I was 14 (over 40 years ago <bg> ) I too worked for just about everything I
wanted (no allowances) as my single parent mother couldn't afford much. When
my oldest son 14 yr. old I gave him $100 month to pay for his clothing,
lunches, school supplies and whatever else he might want. Yes, he would blow
it on a lot of nonsense. And he soon learned that when he did such spending he
didn't get the things he really needed. Now he's 16 and gets $150 month and
he's much more careful about where he spends his money. And if he wants more,
yes . . .he'll have to find a job! He's also learned some things about debt
since he used to borrow money from friends (his mean parents wouldn't advance
him ANYTHING) when he was short. He still doesn't handle money as well as I
would like him to and I only hoping the lessons he's learned will stay with him
through adulthood.

"Sgt. Sausage" <nobody[at]nowhere.com> writes:
- quote -

[re: 14 yr old]
- quote -

I suspect (and CK can correct us) that "allowance" is in quotes
because there are lots of other expenses specifically for the
14-yr old that would come out of there - clothing, etc - which
are not "household" expenses. If he travels, that's an additional
plane ticket, if they dine out, that's an additional dinner, etc.
I'm not sure how he distinguishes between "household" and person-
specific expenses, but I wouldn't guess that that $140 goes into
the kid's pocket.

As far as safe investments - you've only got 4 years or so for
that college fund. That's a _very_ short period of time and
another poster suggested CDs. You might also consider E-bonds
or I-bonds - which are at least as safe as CDs, have comparable
rates, and which can be purchased easily and monthly in small
increments. They also have several tax advantages which are
worthwhile to consider.

The main downside is that if they cannot be cashed in at all
for one year from purchase. That should be fine, though, since
if you start buying them now, you'll long since have been able
to cash them in later on. You'll lose 3 months of interest
when you cash them in if it's been less than 5 years, but
that's a pretty tiny penalty given the other benefits in
favor of these bonds (including potentially not having to
pay any income tax at all on them if they are used for her
educational expenses).

See <http://www.savingsbonds.gov> for _loads_ more info.

In particular:

[re: education expenses:]
http://www.publicdebt.treas.gov/sav/saveduca.htm

[in general re: series I and EE/E bonds:
http://www.publicdebt.treas.gov/sav/sbiinvst.htm
http://www.publicdebt.treas.gov/sav/savinvst.htm



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"C.K." <CK[at]BELLSOUTH.net> wrote in message
news:Adekb.7599$ft2.5618[at]bignews3.bellsouth.net...
- quote -


$140 "allowance" seems rather steep. Granted, inflation and all, but when
I was 14 (20 years ago) I earned (that's right, earned -- had to work for
it) a 5$ a week allowance.

I think that $140 a month is a bit much for a 14 year old kid, and most
kids today would just end up blowing it on stuff they don't need.

In article <Adekb.7599$ft2.5618[at]bignews3.bellsouth.net> , C.K.
<CK[at]BELLSOUTH.net> wrote:

- quote -

If the savings is for school, she doens't have the time horizon to
put it at risk. Set up an account for her that earns money market
rates. When some nice round number accumulates, purchase CD's.
Purchase the longest duration CD you can to maximize the interest.
For example, at 14, a 5 year CD would mature when she is 19, which
lands in her 2nd year of school.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

I am 30 years old, I am married with 2 small children. My mother passed
away recently with no insurance or any assests to speak of. I now have
custody of my little sister who is 14.

She will begin recieving social security benefits this month in the amount
of $640. I plan to distribute the money as follows: $200 to household,
$140 allowance for her use. and I wanted to invest the remaining $300 a
month for her future college needs.
The benefits will stop when she is 19 so I don't have a long time. She has
no savings now so anything is better than nothing. I just need some advice
on where to put this money for her.

Thanks,
Wil