Should we? I don't know..

United States
February 15, 2013 8:48am CST
We still haven't gotten our federal taxes back yet.. they've been delayed because we're claiming education credits due to being in school. The IRS finally just accepted them yesterday so we will get them back in another couple weeks or so. We did get our state taxes but the entire thing went to catch up on bills and that's gone now (we just got it yesterday!). But that's not the point.. Hubby and I have been having a little debate over whether or not we're going to let the kids pick out something for themselves with our tax money. In years past that's what we've done. We let them get something that they wanted from a toy store. Last year they each picked out a DS. This year the twins want iPods while the 6 year old wants a new DS. Now here's my dilemma.. I did sort of promise the kids they'd be able to buy something nice for themselves with our tax money because Christmas was a little tighter than expected. But now that we're planning on how to spend the tax money.. I really don't want to waste it on needless items such as toys and electronics. My goal this year was to try to save as much of the tax money as possible to help us out through the rest of the year when things get tight. Aside from catching up on the rest of the bills and doing some necessary car repairs, I really had no intentions of spending a dime of the tax returns. Of course this is contrary to our usual routine of going on major shopping sprees until the entire return is gone within a week.. so understandably the rest of the family is having a hard time digesting my plans. Well.. hubby is anyway. I haven't really told the kids the plan yet to see how they feel. Sadly hubby thinks this will just make them feel depressed and dejected. At least one of the kids already doesn't bother asking for things he wants or needs because the usual answer is "We can't afford it". Hubby and I have not yet decided if we think this is a good trait (understanding the importance of money and living without unnecessary items) or a bad one (not bothering to mention anything because he's certain he'll be told no.. even when it's not that expensive). Hubby thinks we should just go ahead and let the kids spend a little bit.. seeing as how I did promise them at Christmas that they could.. and then we can save the rest. He's sure we'll still have plenty left over even if we do go on minor shopping trips. I'm of a different mind frame. I've seen how quickly that money can disappear.. even though it's a large return. In the past I've sat there scratching my head, adding it all up, trying to figure out where it all went.. and never could! That's why I'm feeling like it's best to avoid all shopping trips at all and just throw it all into savings (after bills and car repairs) and be strict with ourselves about using it. Maybe we can come up with a solution.. to give each of the kids a set spending amount and they can't go over that amount. That might cover all of our bases.. I get to save as much as possible by not giving anyone free reign of the cash... and the kids get to learn the importance of being thrifty. If I give them each $100 they won't be able to get the iPods they want, but they might be able to find a cheaper MP3 player within their budget! What are your thoughts? What are your plans for your tax returns.. or have you already gotten and used them?
2 people like this
9 responses
@dawnald (85146)
• Shingle Springs, California
15 Feb 13
I'm planning on coughing up some of my severance money to pay uncle Sam (insert smiley with sour expression here)...
• United States
15 Feb 13
Darn that uncle sam!
1 person likes this
@dawnald (85146)
• Shingle Springs, California
15 Feb 13
I can't exactly complain. I did get a very large severance check, and much of it is still in the bank. Also, I didn't have taxes deducted from my unemployment, and I didn't send the quarterly payments to Uncle Sam that the accountant said to. Too much going on, and I didn't know if I was going to need the money.
• United States
15 Feb 13
Makes sense.
@lilybug (21107)
• United States
19 Feb 13
I got my money back on the 12th of this month. I have already spend a good chunk of it paying off bills, but I still have a good amount left. I have gotten my kids some new shoes and new clothes, but really that is about all they have gotten so far. Oh wait, I did get my daughter a DS game the other day at work, but with my discount it was only like $10. I do plan on letting them pick out something nice, but I have not decided on an amount yet. I want to get some new furniture with some of the money I have left and put the rest in the bank. I would probably end up getting them the things they are wanting just because you did already tell them they could get something nice and they have specific things in mind. BUT I would let them know that they are not getting a shopping spree this year.
@lilybug (21107)
• United States
19 Feb 13
I understand that! Clothes are more useful.
• United States
19 Feb 13
Still haven't decided. We'll probably let them get some stuff.. we both spoil them terribly! I'd just rather spoil them with clothes than with electronic gadgets.
@AmbiePam (92714)
• United States
20 Feb 13
I'm behind in my e-mail, so I'm just seeing this now. Save the money. Or pay bills with it. That's more important. Kids have to know there are more important than getting stuff. I mean, a hundred dollars each? I just think you're being more responsible with the money if you do something with it other than giving it to the kids to spend. Maybe take them to a movie or out to eat as a treat, but you owe it to yourself to set the priorities. I know I don't have children. But I've been in a family where money is so incredibly tight. And seeing my parents be wise with their money really helped me now that I'm an adult. And my parents have counciled so many people who are having troubles within their marriage and family. And money is so often the problem. You can't make everyone happy. But knowing you're doing what is right has got to be a better feeling than just seeing everyone have a temporary satisfcation.
• United States
20 Feb 13
Temporary satisfaction.. good way of putting it. Hadn't really thought about it that way before.
• United States
15 Feb 13
Personally I think that having the set amount is a good idea. They can't get iPods, but so what? Is that something they really need? Would that extra $100 per kid that you don't spend come in handy later in the year when they suddenly grow and need new clothes or the car breaks down and you need to have it towed and repaired? We usually blow through all of ours as well. It was considerably smaller this year and I know that it was mostly used for car repairs, bills that needed to be paid, and items for the house that we'd been going without, all though we actually needed them. There was very little "for fun" shopping this time around. Good luck however it goes.
• United States
15 Feb 13
I have 5 kids.. that's $500 that WOULD come in handy later in the year!
@jillhill (37354)
• United States
16 Feb 13
My federal always goes in savings....my state to pay a bill. When my kids were little and I got my tax return...I dressed them up in their best clothes and took them to the nicest restaurant in town and they got to order anything they wanted from the menu. I wanted them to know that I appreciated all the help I got from them while working two jobs....even when they were very little. I guess I wanted them to know that hard work is rewarded!
• United States
16 Feb 13
We've done that too.. our yearly visit to Red Lobster. Not sure we're going to do it again this year though with the kids. I figure they don't really care.. they'd be happy going to eat anywhere, including McDonald's!
@kprofgames (3091)
• United States
15 Feb 13
I completely agree with you. I think if there are money struggles throughout the year then that bonus of a return should be saved for a rainy day. I too think it's important to teach my children the importance of money. Any added income would go straight to the bank. If turned in cans for cash, that would go into a general fund (aka cookie jar) for gas money to get back and forth to work. I might be a prude when it comes to spending but what happens when the car breaks down and I have to call in as a no show? I'm always thinking of that because was without a working vehicle for one summer. It sucked! I'm all for doing something nice for our children when we can, but is the ipod a necessity over some clothes they need for school? That is how I rational it out in my brain. Do I want it, well heck yeah I do....but do I need it?
@GardenGerty (160665)
• United States
15 Feb 13
Hubby has not even filed taxes yet. Not sure we will get anything back. If you told the kids they could get something, you should follow up on that, but not promise anything next year. I worry about your child who never says he wants anything. I grew up that way. He is learning to let money manage him, not how to manage money. I have had teeth abscess in my mouth and done without because of money issues as a child and my parents had no clue. I still will do the same thing, it is a lifelong habit. He needs help.
• United States
15 Feb 13
I would hope he'd tell us about something major like pain! Last year at school they had a laser tag dance which cost $5 to get in. My daughter mentioned it and said she wanted to go, and I let her. My son never said a word.. I assumed he didn't want to go. Later he told his dad he had wanted to go but figured we didn't have the money so he didn't ask. I'm not sure why he did that knowing his sister was going. This year when there's been a dance he's said he wanted to go.. and he's gone. They've had 2 dances so far this year.. and he went to both.
@GreenMoo (11834)
15 Feb 13
I'm on your side here. If money is tight, then hang onto this money and put it towards something worthwhile. The kids might grumble, but it won't do them any long term harm and might teach them some lessons about priorities. I think your compromise solution is a good one. If everyone gets a set amount to 'blow' on whatever they want, they'll still have had a treat but they'll have to think it through a little more carefully.
@bounce58 (17387)
• Canada
18 Feb 13
I haven't gotten mine, and there is definitely some intended 'items' that I want to get from our tax return this year. But like you, it's always a dilemma for me, as I too know how quickly can cash go through my palms, and sometime I also don't know where it has gone to. But this 'major' expense I have for the tax return has been in the works, in the plans since last year's tax return. So, it's a bit difficult for me too.