Money-Smart Monday

with John Lanza

Hello, friends,

I hope you enjoyed your holiday weekend. Here is your special Tuesday edition of Money-Smart Monday.

A common concern I hear from parents of tweens and teens is this:

"Won't an allowance start costing me a lot more money once my kids are older?"

It's an honest worry. As kids grow, their wants get bigger—and more frequent. Shoes. Snacks out. Gifts for friends. Apps. Activities. It can feel like their allowance is just another bill layered on top of everything else we parents have to deal with.

Allowance as a budget swap

But there's a reframe. Think of an allowance as a budget swap, not a budget add:

A smart allowance doesn't require new money. It redirects money you're already spending into your children's hands. Instead of the constant drip of "Can I have money for … ?"—movies, snacks, clothes, gifts—you create an intentional system that shifts spending control to them.

You're not increasing your family budget. You're swapping who makes the decisions. When parents manage this approach well, something surprising happens: Spending often declines over time. Fewer surprise asks. Fewer impulse yeses. More intentional choices.

Here's a simple rule of thumb: If you're already buying something for your kids, you can swap it and make it their responsibility.

The tween/teen upgrade

As kids move into their tween and teen years, allowance works best when it starts to look a little more adult.

That change doesn't mean a big raise.

It means more responsibility paired with the money.

In The Art of Allowance, I call this upgrade The Breakthrough Allowance—a shift from a simple starter allowance to a setup where kids begin managing categories many parents already pay for, such as:

• clothes
• gifts for friends
• food or snacks out
• communication (like a phone)

A practical way to keep this move cost-neutral: Roughly estimate what you already spend in one of these categories. Then start by handing over just that one. (Gift giving is a great entry point.) You can expand later, when everyone's ready. No perfection required. "Close enough" works.

A good allowance system needs guardrails

Here are three guardrails for your allowance system that work especially well with tweens and teens:

1. Be clear about what items allowance covers—and what items it doesn't. Family basics (food at home, core school needs, sports equipment) stay with you. Allowance covers agreed-upon categories, whatever they happen to be for your family.
2. Pay monthly once your kids are ready. Monthly distribution feels more like a paycheck. If kids run out of money early, they wait. That discomfort is the lesson—no rescuing required.
3. Do a reset once or twice a year. Kids change fast. Your plan should too. As responsibility increases, so can the amount. We call it the "art" of allowance for a reason. It's often a bit of a work in progress.

Try this 10-minute plan this week

• Pick one spending category you already cover. (Food out with friends works well.)
• Estimate what you spend per month. (A rough amount is fine.)
• Hand that amount over, along with the responsibility.
• Agree on what happens if the money runs out. (Usually kids wait.)

That's it.

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Friends, I'm actively exploring a bigger question:

What can we do to help families become more money-smart with less guilt, complexity or conflict?

If you're experimenting, struggling or figuring something out, I'd love to learn from you. I'm also looking for thoughtful parents and practitioners to bring into these conversations—in this newsletter and on my podcast.

So tell me: What's the one "kid spending" category that keeps creeping up in your house?

Hit "reply" to let me know.

Until next week, enjoy the journey.

John,
Your Chief Mammal

📗 Get The Art of Allowance book (for parents)
​📽️ Watch The Money Mammals: Saving Money Is Fun movie (for kids)​
📚 Get the "Share & Save & Spend Smart" series (for kids)​
🫱🏻‍🫲🏽 Become a partner or book me to speak (for businesses)

P.S. Please consult with a financial or investment professional before making any decisions that might affect your financial well-being.

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