Receiving a Sugar Baby Allowance

By SouthernSD

Jun 10, 2016

So you’ve started receiving a Sugar Baby allowance and have questions on the what’s, how’s and where’s of being financially smart and secure. Some of this has been covered in other LetsTalkSugar blogs, but let’s expand on the topic and get you thinking outside the box. Below I will touch on what to do if you are receiving financial aid for school, methods for safe money transfers and how to go old school with your allowance to keep prying eyes at bay. Let’s start with the basics…

Bank Transfers  

One of the most discussed topic in forums and blogs is about receiving bank transfers. Is it safe to receive a bank transfer from a Sugar Daddy? The simple answer is yes. A traditional bank wire transfer will require the sender to have your full name, address of record with the bank, bank account and routing number. There obviously has to be a level of trust and safety between the two parties to divulge that information.

If you are worried about the other party gaining access to your account, don’t be. They will not be able to access your information unless you give them your login. Without that information they cannot make withdrawals or reverse transfers. Also, keep in mind that the Banks/Credit unions are required to report any deposits of $10,000 or more to  the IRS. It does not matter how the money is deposited – cash, check, wire/online transfer – it will be reported, so for your own piece of mind, make all your Sugar Baby allowance deposits $9,000 or less.

Helpful tip: when possible, ask for any allowance in cash, gift cards or reloadable credit cards. This way you will always have the means to pay for your everyday items or splurges using those methods. One of the first things I ask at the beginning of an arrangement is her favorite places to stop or shop, (i.e. coffee, restaurants, clothing and makeup). I give loaded gift cards for those places so her everyday or weekly stops are covered.

Money Transfers

Another question I see quite a bit; Are there other ways to transfer money safely? Of course, all thanks to the internet. There are now apps and less intrusive banking methods available.

Firstly, there is no difference between brick and mortar banks and online only banks; the same rules apply to all. Many banks now offer easy transfers using just a email associated with the account. If the two parties bank at the same location, most banks now offer free account to account transfer.

Helpful apps for money transfers include: Google Wallet, Paypal, Popmoney, Square Cash and Venmo, just to name a few. All will protect you and your identity if there is any concern. Keep in mind most have some type of fees associated with usually charged to the person sending the money.  

A Note About Financial Aid

Most forms of financial aid and some student loans will require all of your assets to be claimed on your application. This includes the obvious and not so obvious; all bank accounts, any property you own and in some cases all of your vehicles. Since you have to list total assets in your bank account while filling out financial aid forms, all cash deposits (your monthly allowance) will be accounted for in the financial aid vetting process which could affect the amount you receive in loads. Just remember it’s a red flag if you don’t list deposited gifts from your Sugar Daddy on the forms.

Note, if you fail to list all of your assets and monies this could be considered fraud and the financial aid could be withdrawn. It may also affect your future ability to take out certain student loans. Most financial aid programs will have in the small print that they have right to verify and audit your information, so make sure you are transparent when listing your assets and monies.

Let’s Talk Old School

So what does that mean in the Sugar world? You have lots of cash on hand from your allowance and want to keep as low profile as you can with banks, family and certain government agencies. For this type of arrangement, you need to change your everyday thinking on paying for bills and for everyday items. I realize this goes against how the world is trending towards online payments for everything.

All utility companies will accept payment in cash at their main locations, some even have drive through pay windows just like banks. In bigger cities many grocery stores are set up to take payments for various utility companies. Look into locations that will accept cash payments and if convenient change your method.  

I recommend stopping by the bank once a week to make smaller deposits. Moving to this method of handling your everyday stuff will cause a domino effect on your accounts, assuming you have another source of income, all that income can go into your accounts and remain untouched to grow as savings.


Receiving your Sugar Baby allowance should not be full of heartburn and angst. Be smart, safe and stay ahead of the game. Work with your SD by letting him know your preferences based on your circumstances. Hopefully you will find a flexible Sugar Daddy that will be willing to work with you.