Technology sucks when it stops working! via Shutterstock
My sister’s laptop is on it’s last legs. The battery no longer works and it’s sooo painfully slow. I volunteered to buy a laptop for her and then changed my mind. Well, not completely. I said I’d pay for the laptop upfront, but needed half my money back. Does this make me a bad sister?
A certain family member thinks so. He insists that I should pay for the laptop because I volunteered and dad paid for my first laptop in full. But here’s my reasoning: My sister is at an age where she needs to learn about money. By having her pay me back once she starts working (in one to two years) this will allow her to learn the value of a dollar. It also guarantees she’ll take better care of the laptop since it’s not coming by so easily.
This also would reinforce the money lessons mom and dad have already taught her — to save, spend wisely, and strive to become financially independent. My main goal is to have her realize how it feels to carry debt so that she’s not tempted to go into debt when she goes off to college. Now, I won’t be charging her interest (that would just be cruel), but she will have to make payments on the first of the month and there will be penalties in the form of chores.
With college approaching fast, dad and I are trying to get her to learn how to become independent. The laptop will be hears and she’ll be able to take it to school. All I want her to do is take good care of it so it doesn’t need to be replaced so soon.
What do you think — good idea or bad idea? How have you taught a friend, son or daughter a valuable money lesson? Do you think I’ll just end up footing the bill in full and pulling my hair out in the process?
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Welcome to Bargain Babe! I’m Mara, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price. 
I think it is a good idea. I also think you will pull your hair out as well. It will not be easy. You did say you would pay for it so the lesson of keeping your word is important as well. I would buy it, have her pay back whatever and put it in an account for her to start an emergency fund. Its a win win win.
If the laptop is over 5 years old, maybe it’s time to replace it. If not, look into replacing the battery, maybe adding additional RAM and performing some clean up on the laptop. These are DIY’s projects, just read how they are done. There a lot of ways to optimize a computer for free. Microsoft and Mac both have tutorials and most of these programs are already loaded into the computer. And why chance taking a brand new and expensive piece of equipment to school.
@Dee I spoke to soon, I know. My intention was to buy her the laptop, but then I had something come up. With my just-out-of-college budget it’s hard to drop cash whenever needed. My sis understands that. She’s agreed to pay for half of it when she starts working.
While you don’t say how old your sis is, my folks put me on a monthly allowance when I started high school. It was to pay for stuff like, athletic tickets, sodas, clothes I wanted [but not stuff like winter coats, etc.] It sure helped me learn about money.
@fran The laptop used to be mine. It’s more than 7 years old — it’s time to replace. Though we are not getting rid of it because my dad will do some maintenance work (like you suggested) and keep it. You see, he uses it for basic things. My sister needs a laptop that’s fast — for writing papers, internet browsing, photos, videos and all that jazz.
@CateS She just turned 15. She doesn’t get an allowance. Dad gives her money on a weekly basis for lunch at school. She decides if she wants to spend it or make her own lunch. If she wants to head to a school game she needs to earn the money.
Hmmm. can’t legally require her to pay it back unless there is a contract, then you might have to sue your own sister! Never have had good success with loaning myown family money. Family members tend to get resentful all around. The non-payer feels guilty and starts avoiding. The loaner gets resentful at the lack of gratitude and lack of payment. That’s why my policy has evolved into an outright gift, no looking back or expectations for future reimbursement.
I agree with you. She will value the laptop a lot more knowing she paid for it.
@Terri Layne Our family is all about contracts! My dad made my sister sign a contract when he bought her an iPod. The contract stated she had to keep up her grades to keep the gadget. Otherwise, he’d sell it. I see what you mean, though. She’s only 15 — I’m not going to sue her. How do you propose I turn this into a money lesson?
Our sons were not given cars, etc., and when they did buy their own, they were responsible for insurance, upkeep, etc. Since those were in the early days of computers (Commodores and Amigas), they had to save to buy their own. The money lessons took with our youngest, but not with the others. However, they had to struggle without our help except for the basics of life (home, food and the like). The youngest son learned to take care of his property, and does that to this day, and also maintains regular savings habits. Our middle son has a very strong and supportive wife, which is really lucky for him. As for the eldest… no comment!!! I realize times have changed, but the fundamental lessons of life continue. I wish all of you young parents and siblings the very best of luck in figuring out what works best for you. Sometimes giving tough love is best.
@Yazmin This is so interesting! I think it is fair of you to change your mind from paying 100% to paying 50% – as long as you explain to her why. The reasons you state in this post are just what you need to discuss with her. I think this is a great learning example for her.
I don’t have a problem with loans to family members, but I think not making her pay back the money for 1-2 years will be too much of a challenge. How would you treat something you don’t have to pay for for 1-2 years? It’s so far in the future that it’s hard to motivate yourself to take good care of it.
Why not include in the contract (I’m assuming you’ll have one with her, following your dad’s example) that she has to pay a small amount each week – $10 or $15 – towards the computer. When she gets a job, she’ll make bigger payments.
Whatever you do, keep us posted! I’d love to know how she does in this situation.