Allowances

It's fun to drive a bunch of scouts to an outing. Besides a sing-a-long of What does the fox say, you get to learn a bit about the boys. Yesterday the topic of allowances came up. This is since recent an important topic for my son as he is responsible to pay a portion of the monthly cellphone plan. He saved and paid half of a new iPhone 5c. I added him to my plan with unlimited voice, text and internet. However he has to pay 50% of the $30 monthly service plan for his phone.

Both kids have been receiving a weekly allowance since last year. Saving is important. At this age, I want to also teach them how to spend. I use the iAllowance iPad application. I love the fact that you can set up an automatic interest for the savings account, so they can appreciate the magic of compound interest. Also it is not all about the money: you can earn stars and free ice cream.

Until recent, both kids were able to earn $3 every week. It was not tied to any chores. Now that obviously my son is coming up short to pay his monthly cellphone plan, he asked to revise the allowance amount. We are changing the allowance upwards, though with strings attached.

Here are those nasty terms and conditions:

1. You do not earn any allowance if you do not participate in the regular household chores. If you do not do any of the basic chores such as making your bed, cleaning up your room, cleaning of the table, there is no allowance this week. 
2. No allowance is given if you do not practice your music instruments or sports. 
3. Your allowance includes a big portion for you to spend and learn how to spend wisely and another portion to save. 
4. You can earn extra allowance by doing a special chore such as planting vegetables in the planter box or cleaning the car.  
5. It is your responsibility to make sure your allowance is credited to your iAllowance account. 

Based upon an article in the Huffington post, the amount is raised to about $0.75 per year of age.

Kid's cellphone contract

The song of the summer is over: "Dad, can I have a cellphone? Da-haad". As my son is more independent and on the road without us, it is a good idea he has a means of contacting us easily. We decided to get him a cellphone. Which cellphone is appropriate is an entire different story. We jointly decided for a smart phone, for which he had to fork over 50% of the initial cost and 50% of the monthly service fee. To complete the cycle we all are accustomed to as adults, we made him sign an official service contract. I created it as a mix of freely available contracts for kids. My son was happy to sign this and even more happy when, as a surprise, we were able to give him his first phone afterwards.

Dad and Mom Mobile - Service Contract

We are excited you will be entrusted with your first mobile phone. Fun fun fun … but there are some rules. This contract between _________________ and _______________ establishes the rules and consequences regarding mobile phone usage. The rules includes, but are not limited to, the following:

Full Access - I must agree to give the device immediately to my parents when they ask for it. I will not hide the password and make it available to my parents at request. At any time, I must fully cooperate in showing them the contents of my device, including contacts, pictures, videos, text messages, or anything else stored in it. My parents may access my phone without my knowledge.

Charged - I will turn off my phone at bedtime and place it in a save location. I will make sure my phone is charged.

Take care - I will know at any time where my phone is and keep it in excellent working condition. I will not share my phone with anyone, except dad, mom, and ___________.

Family - I will not disrupt the family harmony. This means I will turn off my phone at the family table, in a restaurant, in church or when asked by my parents.

Being a person - I understand that having a cell phone is a means of communication, and is not a replacement for actual face to face interaction with my friends and family members. Therefore, when I am with others, I will make the people I am with my priority.

School - I will abide by my school’s rules regarding use of the device. I will not disrupt the class by my phone usage. It is expected I keep up your excellent grades.

Malicious usage - I will not text, email or say anything through the device I would not say in person. I will not use my cell phone to take pictures or video of nudity, violence or other unlawful activity. No porn. I will not use my cell phone for malicious purposes, i.e. bullying, spreading rumors/gossip, etc. nor will I send text messages or visit websites that are vulgar, obscene, or sexual in nature. I understand that such messages or websites are both highly inappropriate and potentially illegal.

Be careful and aware - I will alert my parents if I receive suspicious or alarming phone calls or text messages.I will alert my parents if I am being harassed by someone via my cell phone.

Responsiveness - I will always answer calls or text from my parents. If I miss a call or text from them, I will call or text them back immediately. I will not lie about where I have been or how I am using the phone.

Having a cell phone is a privilege, and it may be suspended at any time for disciplinary reasons. If suspension occurs, that does not negate your financial obligation

Financial commitment - We want you to have some ownership in your new device. While we were happy to buy this initial phone for your use, if it is lost or damaged, you will be responsible for replacing it. The ___________ is an expensive device and costs nearly $___. You have to pay $___ for your part of the device. Monthly, you have a $___ fee that covers your call use, unlimited texting and unlimited data. If you make additional purchases (e.g., through iTunes), you will be required to pay ALL related charges.

I agree to all conditions stated above and will adhere to them with a gracious and positive attitude. Any failure to comply will result in loss of phone privileges.

Date: _______________
Signed by: _______________