My son is turning 15 next year. Instead of giving him his allowance daily/weekly, I will give him $300 monthly. Do you think its a good way to teach him how to budget his money?

I can't help but ask if it's $50 per week, how come 300 a month ? (There's at most 4 weeks in a month haha)

There's pros and cons. As do with many such plans, you're trying to limit their spending (which could be effective) but you're not advising them how to. For example, they can can just indulge in KOI tea twice a day, just below the $10. The habit is simply not desirable. Another concern is him suddenly inundated with such amount of cash from just $50. There is a high chance of just splurging it on electronics or what nots (by that i mean earpiece, shoes, etc). I suggest for him to keep a statement of his weekly expentiture, if it seems acceptable to you, then you can transit to montly $300. Also, I dont think you should be paying for his weekend outings. I feel anything not considered a necessity (transport (to school), food, education) should be paid by him personally. (Phone is debatable)

If I had a son, I would give him the full $300 monthly for one month to start, and observe how he goes about budgeting for his transport/phone bill etc.

Post observation, I would then speak to him on budgeting, based on how he looked to apportion his allowance.

It's actually interesting to see what your kid would do without guidance!

when i started sec school, my dad started giving me allowance monthly to teach me to manage my money. you can consider giving him a higher sum, and not giving for his weekend outings and transport. that’s what my dad did. i paid for everything with my own cash, outside of phone bill cos he would pay that together with his own.

Hi,

You are very thoughtful for your kid and it is very nice of you that you are supporting and you are planning to support him in near future also.

See, if you will just give him money without talking to him that, how he can use this money and support his expenses, you won't be able to make him learn the importance of money.

Now you are giving him $50 a week that means $200 per month, I will say don't jump into $300, make it $220 or $250 at max. Tell him "you are a young man now, and I expect you can manage and balance your expenses with money. I am adding $20/50 extra in your allowance. If you will be able to manage your money I might increase it. But first, you have to prove yourself that you are good with money."

You can share your experience with money, like how did you start.

After that, he might understand that you are not just giving him money but you expect him to respond.

Children usually feel good when they are given responsibility.

This is what I would have done with my kid but I have a younger brother and that "sense of responsibility" funda works efficiently.