SG Budget Babe
Asked by Anonymous
Asked 6d ago
My son spends so much money on clothes- brands such as off-white and Balenciaga. To me these brands are really not worth the steep price that he's paying for, how do i get my son to see this?
SIMPLE: Cut his budget so that its just enough for his food and transportation.
If he wants more money to buy off-white and Balenciaga, make him work for it.
Who knows, he might be so driven by his desire to buy branded goods that he might turn out to be a great entrepreneur ;)
Top Contributor (Nov)
Is he using his own money to purchase them? If yes, it may be difficult to tell him not to buy them. If it's your money, then cut it off.
I'd try to instead show him that the money he could've saved buying a cheaper brand and compounding that difference in price over a few years can be very appealing. Like instead of buying a $1k shirt, he buys a $100, the $900 difference would be $4.2k in 20 years time. And he'll still have a shirt right now, and can afford 40 more in the future.
I would cut his allowance to the bare minimum. There's no need to explain to him, other than to let him know that he is obviously having too much allowance since he can still afford branded stuff after spending money on essential food and transport.
Top Contributor (Nov)
How old is your son? Buying those type of goods seems a bit amazing for a young kid. If he is old enough to choose luxury goods, he is old enough to earn money to support himself and fund his own purchases.
Top Contributor (Nov)
I will classify this as a problem on understanding values and having monetary goals.
First of all, we have to accept what you feel as a problem and not repel it. This is because different people have different needs and wants. Accordingly, we feel complete and satisfied in different ways. If we use your son as an example, he may feel happy on buying branded goods. If we reject his idea, it may force him to reject any subsequent ideas from you. Therefore, step 1 is always to accept the situation.
Next, understand the source of the problem. For instance, it may be due to stress at work, peer pressure, or successful marketing campaigns (especially online shopping).
Once we have identified the source of the problem, we will have to do our best to be in your son's position and to understand the reason for his actions.
Thereafter, find ways in an attempt to solve the problem. From my perspective, I feel that this is a problem of misaligned value of money and the need to have stronger monetary goals.
We can use third party channels, e.g. news, economy to let your son understand that money should not stop at just spending on branded goods. Instead, we should have bigger goals in life, e.g. to save up for bigger ticket items like cars, house, or even to create passive income for the future.
All in all, we will have to be open to understanding the situation from your son's point of view. From there, slowly find ways to help him build bigger goals and priorities in life. Once he has a new goal, he will realise that such expenditure are probably not worth it at all.
Here is everything about me and what I do best.
Have a good talk with him and try to expose him to more personal finance articles/savings management.
Unless the amount you give him is really a lot, I would view cutting allowance/budget as a last resort as it doesn't teach him how to effectively manage his money - when he earns his own money he may still have such spending habits.
If your son is paying using his own money, then honestly I think there's nothing much you can do. But if he's using your money, then you will need to cut it off.
Perhaps bringing him to do volunteering work together might let him see the reality of the world that branded stuff doesn't bring true happiness but only short term?
Top Contributor (Nov)
If your son has earned his own keep and is spending his own savings or earned money on these items, then what I feel is important is for him to understand the concept of delayed gratification. Money not spent on such items can grow to a point where he can effectively get his next Balenciaga for 'free' next time from the dividends/returns. I'm sure if you were to share with him that there's a way to get his next off-white for 'free' just by setting a part of his money aside, he might listen.
However, if he is spending it out of your allowance, then clearly he is not treasuring how hard it is for you to earn the money. Instead of outright cutting his allowance (which might lead to arguements and stuff) I'd reduce his receiving allowance by taking a portion of it and investing it for him instead, explaining to him that I'm 'helping' him get free Balenciaga in the future and need to set aside something now for it to occur. Effectively I'm teaching him delayed gratification as well. So for example, if he gets $1K/mth from me, I'd take away $300/mth and show him what I'm doing with it/where I'm deploying it.
You can always transfer ownership of the assets you have invest for him, to him, when he is of age. Hopefully this will also motivate him to understand why you are doing this.
Cut his allowance to zero. If he wants to get his clothes, he will have to work to earn it.
Once he starts working to earn it, will he then realise the value of money (hopefully). This is really based on my own experience where I started work right after NS and appreciated the value of money, savings and affordability
Bring him to a pawn shop, and let him check how much his 'pre-loved collectibles" is worth in the secondary market
Education is key. Constant nagging is only going to sour your relationship with him.
Find out the root problems might be best -
Where did he get the idea of all this branded goods? Social media or peers?
Is he at that stage of feeling the need to have a good image to show people how well-to-do he is?
Is he at that rebellious age where he listens to his peers more than you?
How old is your son and how is he funding his spending?
If he's using your money, the solution can be quite simple - just stop paying for his purchases. If you've given him a credit card, either take it back or lower the cap to say, $500 per month.
If he's funding his own spending (e.g. already a working adult), you'll need to educate him. E.g. letting him feel/use a product that is of similar or better quality but at a much cheaper price and ask him whether he can feel/see the difference. Also understand his motivation to own these branded products. Some people feel insecure and use branded products to lift their social status. If your son is the same, you'll need to help him gain confidence without the use of branded goods.
If it's not his own money - cut the source.
If it's his own money - figure out why he keeps buying branded goods. Is it for the social status? Is he buying it with the intention to sell at a higher price? For the former, try persuading him to sell off the ones he's not utilising that much. If it's the latter I think it's ok as the reselling business is actually quite lucrative.