How do you help your teen start budgeting?

12 Answers

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  • 3 months ago

    Hand over all your cash and have him pay the bills.

  • 3 months ago

    I did the allowance thing when they were little but in my opinion it has nothing to do with teaching budgeting. My daughter is now 17. Starting at the age of 14 when she was able to get a job, she did and we set up a checking/savings. Since then her phone has been taken out of my name and she pays that, make up, half of drivers ed, and anything else she wants after a chunk of each check goes into savings that she cannot touch. Starting at 16 she contributes $10/mo for Internet, Hulu, Netflix, etc. and the second her phone is shut off or I don’t get this all passwords get changed and locked. This has only happened once. Since 17 we have found a car, sat down crunched numbers, made a budget, and already gotten pre-approval from the bank for when she’s 18. We will not hand them vehicles especially and we also do it so they can start to build good credit while being shown how and still being able to handle payments.

  • D_21
    Lv 4
    4 months ago

    I'm not sure about an allowance. Definitely go over everything with them. They should have their own bank account as soon as they have money to put in it. Go over bank statements with them twice a month. Often enough to form a habit and get them thinking about it.

    Maybe get a wall calendar out in the main part of the house somewhere like the kitchen. Track when bills are due. Even if your teen isn't paying bills, being more aware of them might be helpful. The more mature they become, talk to them more about running the household to prepare them for doing it on their own some day. Have them help you with things such as changing a furnace filter. Show one, do one, teach one. Have them teach things back to you. It helps integrate it into the mind.

  • 4 months ago

    I think you must start giving him some dollars a week when he helps you with chores/completing homework.

    After this, he earn some more.

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  • 4 months ago

    Set up a checking account and savings account in their name. Deposit funds into their checking every other week (like a paycheck). Tell them they are responsible for paying for their own clothes/lunches/phone/fuel/entertainment/whatever. Make sure they start an automatic savings allotment. Every month, go over their bank statement with them. Ask them if they remember all the purchases and felt glad they spent their money on all of them. Explain how in-the-moment money decisions can be costly and affect future your purchasing power.

    Let them make one purchase a month on your credit card, then when the bill comes in, make sure they pay it. Drive home that credit cards are not "free money" but can actually shackle you.

  • 4 months ago

    tell them if they dont spend money then you'll give them a prostitute

  • edward
    Lv 7
    4 months ago

    Do the 50/30/20 split with everything they have. 50% for necessities, 30% for whatever the kids want and 20% in a savings account, not to be touched under most circumstances. Except for real emergencies where it’s an unavoidable circumstance. They’ll learn to live with 80% and as opposed to spending all the money if they want something expensive, they have to save for it.

  • keerok
    Lv 7
    4 months ago

    Give a weekly allowance and absolutely no money in between days. Explain to the kid what the money is exactly for so if something comes up that is not covered by the allowance, he can ask you for that.

  • 4 months ago

    i would suggest making sure they have a bank account, first of all. teach them how to balance their checkbook and write checks. maybe help them form a list of how much income (from a job or allowance or whatever) will go towards fun stuff and expenses, and how much would be a good idea to save. i think this is all a good start.

  • 4 months ago

    Explain the concepts, then do not bail them out when they run out of money. They will learn through trial and error.

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