Teenagers On A Budget

Tips For Teaching Your Teen Money Management

One thing teenagers love to do is spend money. They don't have the perception to decide what are their needs versus their wants. They often believe that they badly need that latest development in cell-phones simply because their best friend has one. Their choice of clothes usually seems to be those expensive brand-name clothes. They have to learn that money doesn't grow on trees and they must learn to live within their means. So how do we keep teenagers on budget?

One way to encourage your teen to stick to a budget is to give them an allowance of their own. This will only work if you insist that they use this for their expenses - and don't give them any more until the next 'pay-day' is due. So if they blow their first month's allowance on a cell phone, they may have to go without that new top they wanted or the school trip they wanted to go on. It's good for them to learn that if they want to buy their school lunch when they could easily take it from home, then they must go without other things.

You must make sure that your teens know what their money is to include, and make sure they have enough to cover it, otherwise it won't be fair to them. Also, it may not be wise to expect their allowance to cover large things like school fees, especially if they are at the lower end of the teen bracket. Show them how to keep a record of all their debits and credits, just the way it would be recorded on a bank statement.

You may also have to explain how they need to save a certain amount because there are certain debts coming up that they will be expected to pay. Just make sure your teenagers know exactly what is expected of them. This will depend on how mature your teen is. Some teens seem to become more responsible than others.

In fact, you could set up a bank account for them and simply transfer their allowance into it every month. Then they can go and draw it out when they need it. This may not work if you live a long way from the bank and your teen has to travel in a different direction to school. Teenagers need to have the time to get to a bank and it needs to be some place they can access safely.

Once your teenagers have developed the habit of becoming wise with their money, you may like to reward them with a gift or special treat. This will give them encouragement to keep up the good work.

You may want to start early and teach family money management before your children become teenagers.

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Notable Quotes

quote openWe didn't actually overspend our budget. The allocation simply fell short of our expenditure.quote close
~ Keith Davis

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