What is this 'interest' concept of which you speak?

A few weeks ago my boy got pissed at me for taking away some privileges (grades related.)  He was up in his room sulking.  My office is attached to his room.  The next day I sit down at my desk and notice a couple of holes in the speaker covering of one of my satellites.  A little investigation revealed there was also a hole in the cone.  Didn't totally blow the speaker but at certain frequencies it was quite noticeable. 

Challenged, both of my kids denied doing it.  I knew it was the boy but I told them they were both confined to their rooms until one of them fessed up.  After about five minutes the boy came to me and admitted he poked the speaker with a pen.  He got to do his sister's chores that weekend and also caught a bollocking for losing control of his anger.

Then we get to speaker replacement.  Both my kids get some money from me every month.  They don't have to do anything for the money - it's all about teaching money management.  They're required to give 10% to God/charity and 10% goes to savings.  The rest is for them to spend as they see fit.  If they go to a show, out to eat, to a game, whatever with their friends or want to buy stuff for themselves they have to pay out of their own pocket.  If we do stuff as a family I pay.  If they run out we won't lend them cash or bail them out.  They just don't get to go.  We figure they're learning and it's working very well for us as a family.

So now he has to pay me back $28 for the speaker.  Learning opportunity thinks I.  Usury laws aside, here are the three options I gave him:

1)  $28 over one month (zero interest)
2)  $36 over two months ($8 interest)
3)  $45 over three months ($17 interest)

He chose #2 and it's paining him big time.   

the only* option should have been:

you broke it, you're buying me this to replace it

good, because your decelerating interest rate timeline isn't 

 

How much do your kids get per month? 

$50 and $30 monthly.  They are 13 and 8 years old.  Leaves them with $40 and $24 respectively after 'deductions'.

Sounds like a lot but it's not.  Those of you with children those ages think about how often you put your hand in your pocket for "hey dad, I'm going to _______.  Can I have $____?" moments.  We don't do that.  Ever.  They really have to manage their money to make it through and they are often broke for half the month.

We also let them buy their own clothes.  They get a special budget twice a year separated into a school clothes amount and a regular clothes amount.  They're told they have to buy so many shirts, so many pants, so much underwear and socks, etc.  If the boy decides he wants one pair of Kr3w jeans instead of two pair of something reasonable, so be it.  If the girl wants to shop at Limited Too she's not gonna have a very big wardrobe.

[edit: We do retain disapproval authority on clothing purchases.  My son was ordered to return an inappropriate t-shirt last time around.]

Trust me, they make a TON of mistakes on all of this to include my daughter flat out losing $20.  But I'd rather them learn those lessons now than the first time they walk into a car dealership or get their first credit card.

BTW, 20 minutes ago my son walked in and asked if today is "pay day".    And it is.   

Both ways uphill?   

I know parents making a lot less than I do spending a lot more on their kids but they're just not tracking it.  Soft drinks, snacks, activities, eating out, music... the list goes on.

Yeah, that's probably what we spend.