Life Money An Allowance System Helps Me Be a Financially Stable Adult Setting up a self-imposed allowance system is simple, and it's never too late to start. By Rebecca Chamaa Rebecca Chamaa Rebecca Chamaa started her relationship with money in her preteen years with her first job as a babysitter. Since that time, Rebecca has continued to develop ways to keep more of the money she makes. She's interested in real estate, stocks, bonds, retirement, credit cards, loans, and any way to create a healthy relationship to investments and money. She makes it her hobby and job to find new ways to think about money, save money, and make money. Highlights: * Six years of writing about mental health, primarily schizophrenia, and anxiety. * Two years of writing about faith and spirituality. * Teaches weekly workshops for writers. * Currently studying Narrative Medicine in a graduate program at Columbia University. * Author of the Book, Pills Poetry and Prose, Life with Schizophrenia, and a workbook designed for the purpose of self-care. * Awarded a grant from Janssen Pharmaceutical to teach writing workshops to mental health advocates. Taught the workshop to over 500 participants. * Volunteer for Human Library Real Simple's Editorial Guidelines Updated on January 26, 2023 Fact checked by Isaac Winter Fact checked by Isaac Winter Isaac Winter is a fact-checker and writer for Real Simple, ensuring the accuracy of content published by rigorously researching content before publication and periodically when content needs to be updated. Highlights: Helped establish a food pantry in West Garfield Park as an AmeriCorps employee at Above and Beyond Family Recovery Center. Interviewed Heartland Alliance employees for oral history project conducted by the Lake Forest College History Department. Editorial Head of Lake Forest College's literary magazine, Tusitala, for two years. Our Fact-Checking Process Share Tweet Pin Email Many parents know there are benefits to giving kids an allowance. It gets them in a habit of doing brain-boosting household chores, teaches them about money, and sets them up for future financial stability and success. Still, I'm sure my own parents didn't realize that I would take the money lessons I learned as a tween and teen and apply them so literally to my own finances as an adult. Yep: I give myself a weekly allowance, and it's how I've been able to avoid debt and prioritize saving. Setting up a self-imposed allowance system is simple, and it's never too late to start one as a fun form of basic budgeting combined with other good money habits. What I Learned From my Childhood Allowance When I was a kid, because we moved frequently, my parents gave us an allowance for long-distance calls (this was, of course, before cell phones). We had a school clothes allowance provided to us at the end of summer each year; it gave us kids the freedom to choose and buy our clothing. We also had a weekly "extras" allowance that we received in exchange for chores. Getting an allowance taught me that for us, a middle-class family, money was something we planned around—and there were limits to the amounts we had available to us. My parents didn't need to tell me that money doesn't grow on trees; I could see that firsthand. I knew that I couldn't have every new fashion trend that came along or buy every album that my favorite bands produced. Plus, putting my brothers and me in charge of buying our own clothes—and giving us a weekly allowance for fun incidentals—turned me into a discount digger at an early age. After all, I wanted more choices in my closet, so I learned to shop for sales. Today, I have an account that is my own version of that old weekly allowance—and it's set up just for the extras. What my Adult Allowance Is for I set aside my adult "allowance" for non-essential purchases, not bills or food, or socks. Instead, it's for a class I want to take, a book I want to buy, or a dress I want to wear to a friend's wedding. I put money in my "allowance" account each month the same way I budget for my cell phone, groceries, electricity, and savings. Some months, I might only spend $10 out of the account to buy a coffee and donut for a friend. In other months, I might not use any of the money—and in that way, my allowance works much the way it did when I was a kid. I save my allowance to buy a more expensive item I might have my eye on, like a unique pair of boots or a new jacket. What my Adult Allowance Isn't for The "allowance" is different from my emergency fund or savings account. I try not to touch the latter two with any of my "wants." Those accounts are for "needs"—and unexpected events and expenses, from leaky-roof repairs to an emergency root canal. For me, I wouldn't even have set up an allowance account without first funding my emergency savings. I've seen how one unforeseen trip to the dentist or a broken dishwasher can derail the best-laid monthly budget plans. Without an emergency stash of cash, I could very easily fall behind on my monthly bills due to unexpected expenses coming up. And once you fall behind, it can be beyond challenging to catch up again. Bottom Line Getting an allowance as a kid seems straightforward and a simple arrangement. But it was one that, for me, had far-reaching and overwhelmingly positive ramifications well into adulthood. For one thing, an allowance taught me how to delay gratification, something that is essential for saving for big adulthood purchases such as a car or a down payment on a house. And for another, getting an allowance also taught me the actual basics of budgeting: Namely, you only get a limited supply of cash. If you want to go out for pizza today, you will have less for that soccer ball you want next week, and so on. For kids, getting an allowance can begin a lifelong healthy relationship with money. For adults, it can be a tool for meeting your needs and still budgeting for those extras—you know, the ones that help you enjoy the life you work so hard to budget for. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit