Once your kids start to grow up and become teenagers, they will want more independence. This not only includes the independence to stay out later and do more things, but also financial independence. As you start to let them earn their own way in the world, make sure to offer them some direction that will help them make smart financial decisions.
Once your teenager gets a job, you should start to teach her about budgeting her money. Many experts advise spending a month keeping track of every dollar spent. This will give you and your teen a clear vision of where her money goes. Once you know how her money is spent, you can ask her to start making better decisions to meet financial goals.
Meeting Financial Goals
The financial goals that you and your teen set will depend on several factors. Perhaps she will need to start saving for her first car or to pay for college tuition. Incorporate each step towards the goal into her monthly budget. That way she can make big goals more obtainable.
Keeping Track of Money
Encourage your teenager to continue keeping track of the money that she earns and spends. You might even give her free budget software that will keep track of income and expenditures. Over time, making a budget that includes savings to meet financial goals will become a habit that endures throughout your teen’s life.
On occasion, your teenager might falter by spending too much money on an unnecessary item. It is important that you let her fail from time to time so that she learns there are repercussions to straying from her budget. If that means she cannot afford to go out with her friends or purchase a fashionable pair of shoes, then she will quickly learn that financial irresponsibility comes with negative consequences.