Or, you told your teen that his increased allowance was to cover clothing as well as extras. Now he says he can’t afford a new pair of sneakers . . . but he has a new walkman.
Teaching teens to manage their money is one of the most challenging issues facing today’s parents. Here are ways to help your teen develop better financial habits:
- Don’t be too quick to bail your teen out of every financial crisis. If he spends his lunch money on a new computer game, let him bring a sandwich from home. Feeling the consequences of his actions may encourage him to plan ahead next time.
- Help your teen set some financial goals. If she wants to buy a stereo, help her see how much she’ll have to save to reach her goal.
- Talk about the times you have saved for something special. The reality of most people’s lives is that we can’t buy whatever we want. But by planning and saving, we can achieve important goals.
- If your teen has a job, do not allow him to spend all his money on himself. Unless your family needs your teen’s income for basic needs, insist that he save half for college or post-high school training.
- Teach your teen that “budget” is not a bad word. Instead, a budget allows your teen to take control.
Copyright © Parent Institute