Strict Budget and Allowance Tracking

I think that cash for the "mad money" is definitely the way to go. You "feel" it more when cash leaves your hand and people routinely spend about 25% more when NOT paying with cash (even if it's debit) so try cash first. It makes everyone more accountable and it's a more tangible way to "see" what you're spending. Good luck!

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does he have a separate account? if so give him cash and let him put it into the bank and use it that way. but sure using the card is a lot easier. but it also allows for misuse of the budget

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Have you heard of mint.com? It's free. That is what I use and it tracks all my spending and categorizes it. It really helped me in knowing what I'm spending my money on. It also sends email alerts if I go over budget in a certain category. It tracks my debit and credit card transactions. It of course can't track cash spending. So you'd have to use debit/credit cards.

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I see both sides of the coin on this one.

I like the cash envelope - I used that for a while. Now we are a cash-only family so my debit card is my cash.

I also know how fast the debit card can be spent. I also don't like having to "track" it like that. Sounds like you are going REALLY strict and allowing yourself some fun money...it may end up causing fights.

Find a "loaded" debit card for him - put that "envelope money" on that and when it's done - it's done. That could be the compromise you need.

You both have to be on the same page with money. It is the thing most couples fight over...there will be some compromises to be made. Have you factored in emergency funds? Have you thought about what vehicle you want to use to get more interest or capital from it? I don't mean "vroom -vroom" I mean investing vehicles....once you hit a certain amount - will you take $1K and invest it in a stock or something else? Have it doing SOMETHING for you instead of just sitting in a savings account collecting SMALL interest?

Good luck!

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I don't like cash systems because I like to earn rewards with my credit cards.

I track with credit cards. It can be a lot of work, and my hubby is awful at telling me everything, but I use mint.com to help, and it isn't that bad. In fact, I like keeping track as it forces me to make better decisions.

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We do something very similar to what you posted about. Except my hubby takes his cash each week and I do mine on the debit. As I spend any portion of my money, I put it into an excel spreadsheet. But I also manage all of the bills so I know exactly how much we have. We have also (on occasion) given 1-2months of a weekly allowance in order for one of us to buy a larger item we really wanted (not needed) at that time. Then the following weeks we got nothing for weekly allowance. I check my bank everyday except Sat/Sundays!

I believe most experts will have you use cash/cash envelope at first b/c so many people are desensitized to the debit/credit card.

I mean do you really even think about what your spending when you use a debit card?? Even though you know it's coming from your bank account. When you see the cash in your actual wallet getting less and less - you take notice.

I would try to compromise - do cash envelopes for 2-3 months and then do debit card after that. Good luck!

In my opinion allowance is free money, to be spent however and on whatever the person wants. I think that if he uses the card you can track every penny he spends and he is giving up that freedom. If he doesn't care then I would say he could use the card since it would allow you to see every penny he spends.

Have him open up a seperate checking account that he can use for his allowance. That way he can use his debit card, you don't have to micromanage him, and he can't blow the budget.

My husband does not have an atm card to our bill paying account, his choice, because he can't seem to keep track of the 'here and there' expenses. So we set up our own individual accounts, now it's his responsibility to manage his own money and I don't have to worry about a bill not getting paid. Win-Win.

Generally all cash works best when you are trying to save. It does not allow for you to go "over" at ALL and there are no exceptions. If there isn't any left, then you can't spend it. It is far easier to "go over" when using a card--because, that extra dollar just doesn't matter in the big scheme, right? You don't really have to THINK. Which causes you to actually consider what you are about to do: spend money that is then GONE.

However, if your husband is like mine and virtually never spends anything out of pocket anyway (haircuts and the drive-thru meal once a week being about the extent of it), then it won't make a difference really. Does your husband take his lunch to work with him, or is he getting meals out? Does he make regular stops for coffee, or other small purchases like that (drive thru drinks, soda machine at work)? If he never spends then he likely can get by with using the card for his haircut, and a $20 bill for the week. If he is a nickel-and-dimer, then he needs to go all cash.

Cash. Can't spend it, even by accident, if you don't have it. It's amazing what I used to break out my debit card for that there is no way I'd break a twenty for.