Everything Teenagers Need To Know About Budgeting Their Money
Teenagers are notoriously bad with money and many teenagers run out of money as quickly as they earn it or are gifted it. However, it doesn’t have to be this way and as a parent it is vitally important that you teach your teenagers to be more self-sufficient and manage their money.
Here are some tips for them so you can rest assured they will be more careful:
Encourage your teenager to get a job – A job is a great idea for keeping your teenager busy and they can earn their own money too which is a great feeling for a teenager. Furthermore, it saves parents forking out money and it means they'll have to open a bank account and savings account.
Encourage your teen to do chores – If your teenager is too young or unable to get a job a good way for them to earn money is by helping at home. This will teach them the importance of managing their time and appreciating the work that goes into running the family home.
Plan a little budget – Your teenager will need to stick to a budget whether it be for their lunch money or to be able to attend cinema dates or spend time with their pals. It is amazing how a few euro disappear so get your teenager into a habit of tracking their income whether it be from a job or chores and estimating their outgoings.
Teach your teen to spend their money carefully – Some teenagers may think it is ok to squander their money on silly things, but others can be smarter with their money. If your teen overspends you need to teach them how to mind their money. You can do this by getting them to save for something they really want instead of you handing it to them. If your teenager does run out of money let them have a lend but insist, they pay you back as this means they learn the value of money quickly.
Save a little – Most teenagers won’t mind saving and not just saving for a certain thing they like but for their long-term plans. This may mean putting money aside for a car or at the very least to pay towards such an expensive item. Saving is a great habit to get into and once your teenager starts, they will appreciate it when it adds up over time and allows them to splurge on something they need.
Let them make mistakes – It is inevitable that your teen will make mistakes and not know how to manage their money at the start, but you must let them learn. This may mean them making several mistakes, but it isn’t the end of the world. While you may become frustrated it is imperative that you let it lie and move on. Supporting your teenager will set them up better for their years ahead in college.
Don’t fret as teenagers will eventually learn – we promise!
Emma Hayes is a thirty-something mum of two girls aged 16 and 10, planting her right into the teenage and tween-age years! Follow her on Twitter at @EmmaHayes25.