Budgeting with Teens
1. Spend, Spend, Spend
Giving teenagers with budgets and guidelines for spending can help them become responsible in operating with business savvy as adults. Credit cards and machines where money appears like magic have given way to a culture of spending beyond financial limits. Teenagers are not immune and spend millions per year as a group. Peer pressure and the media keep the trends changing and teens coming in for the newest and the best.
2. Make Budgets Family Business
Developing and sticking to a budget should be a family affair. When children learn that it takes money to buy things and that money is earned from working they learn to appreciate it more than if everything is simply handed over. By eighth grade most teens are heading to the mall with friends and being able to go in with a pre-determined agreed upon spending amount helps teens develop confidence in making good spending choices. Making teens responsible for purchasing their own personal items is even if you’re fronting the money is a good way for them to learn some degree of independence. If they choose candy and music over hygiene items you know you need to have a conversation.
3. Goals and Gifts
If you want to do something extra special for your teen help them learn the valuable lesson of setting goals and seeing them through. If you plan to give your teen the dream car of his or her choice as a graduation gift from high school, tie it into grades, helpfulness around the house and extracurricular activities. You get the point. Reward your teen but make sure they get some life lessons as part of the bargain.
4. Boundaries
There have to be consequences for infractions like constant overage on cell bills and abusing credit card privileges. Confiscating privileges for a while can go a long way in the discipline lesson. Over time your teen will have good business habits from budgeting