bluntmoney.com

My son & I talk about money quite a bit, usually in relation to how he wants a car. The last time he brought this up, I told him that for every dollar he saved for a car, I would match 50 cents, and that for every dollar he saved for college, I would match the dollar. In both cases this was “up to a certain amount, and I’m not sure what that amount is”. I’m still not sure what the matching amount limit will be, but decided to go ahead and put together a savings contract for him. Here is the initial draft.

Matching funds contract

I, _______, agree to match a portion of funds saved by _________ for the purpose of a college education and a car based on the following conditions:

COLLEGE
Funds will be matched dollar for dollar, up to an amount that is to be determined by (my name’s) sole discretion at a future date. Funds must be used solely for the purpose of paying for college tuition and textbooks, and must be saved in an interest-bearing account that is clearly designated as a college fund. Funds may not be withdrawn for any other purpose, unless scholarships or grants have been received that will cover college tuition. If college tuition is covered by means of scholarships or grants, the amount saved by (son’s name) will be available for any type of use and the matching funds given by (my name) will then be available for housing and transportation expenses. Funds saved must be either earned directly by (son’s name) or received by (son’s name) at birthdays or national holidays.

CAR
Funds will be matched 50 cents for every dollar, up to an amount that is to be determined by (my name’s) sole discretion at a future date. All funds must be used solely for the purpose of paying for the purchase of one car, to include costs for tax, title, and tags. Funds must be saved in an interest-bearing account that is clearly designated as a car fund. Funds may only be withdrawn for these purposes: purchase of the chosen car, transfer to college fund, or transfer to a retirement fund. Funds saved must be either earned directly by (son’s name) or received by (son’s name) at birthdays or national holidays. This car offer expires immediately upon (son’s name’s) first purchase of a car, even if additional monies are owed on that car.

Signed: (my name & son’s name)

I’ll think on this a bit and see if anything glaring has been left out, but I hope it will motivate son to save a large portion of his money and NOT to buy things on credit.

• Are Student Loans the Source of the Next Financial Meltdown? A perfect storm may be brewing in the financial world, and this time it is not the fault of sub-prime mortgage lenders. Student loans are...
• Should You Pay for Your Child's College Education? Paying for college for yourself or for a child can drop you into debt faster than many other things. Aside from huge disasters like medical...
• Guest Post - 10 Ways To Make Saving Money Painless. Today's guest post is from Brip Blap. What does that mean? Check out his site when you get a chance and find out! As anyone...