How do you help your teen start budgeting?
- perfectlybakedLv 72 months ago
My mom never really counseled me on how to handle money responsibly.
I think closest thing was her helping me find a credit card to apply for after I got my first job.
There is so much more and I think a kid will take their parent's words more seriously if that parent's own financial state is a good example.
My mom has never been rich, but she loves houses.
They had a house that they bought for $75,000 that was worth much more by the time they moved out of it - almost paid off.
They went from a $700 mortgage to like $2000.
- MattmanLv 62 months ago
Show them what are expenses to face at.
- 2 months ago
start teaching at 4 and 5 gradually adding more important information.
- KTJoeLv 72 months ago
No budgeting for teens; for one many have small salaries, and or meager allowances, just not enough money for budgeting, secondly it's fun spending, buying whatever at whatever the cost. He or she will learn cause and effect of spending and if a big ticket purchase is wanted, a teen will have to qualify for a credit card or save.
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- 7 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.
- 7 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.
- 7 months ago
tell them if they dont spend money then you'll give them a prostitute
- edwardLv 78 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.
- keerokLv 78 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.
- 8 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.