All parent knows, teenagers don’t come cheap! In a materialistic world, it’s very hard to keep up with latest trends and crazes out there! All parents want their kids to be a contributor to society later in their adult life. When they are twelve years old, kids are becoming more independent and know what they want sooner than later. Receiving big gifts when it is Christmas or birthdays are becoming a thing of the past . Kids these days seem to own everything the moment they are released. How do we teach them to be financially responsible sooner rather than later?
When kids receive their first pay packet, many believe that it’s all their hard work so they can blow it and still come to you for more cash. This is an irresponsible behavior society has instilled into our children’s mindset with the offer of credit cards and national debt at a record high.
Budgeting for teenagers is essential for their financial understanding. Budgeting for teenagers is a little more complex than a 4 year old or a 10 year old as by now they have more expenses to account for. The common allowance rule of “one dollar per age” doesn’t occur here anymore at this age. Most teenagers’ allowance would be in the range of $20-$50 per week. This takes into account travel cost, lunch money, sporting equipment, excursions, outing with friends, games and toys. For those who are able to drive, the cost of petrol and running cost will also be a part of the budget.
A simple excel spreadsheet is where we will need to start to draw up a kids budget. Income on top- allowance, part-time work will account for most of this on a weekly basis. Savings should be another category as its vital we teach our kids to save before they learn to spend. This is definitely very important for a kids budget. A minimum of 10% is encouraged to be saved. If they wish to save something big it may be wise to create two saving category – one that is not to be touched and another to spend later. Then it’s the all important Spending categories – transport, lunch money, excursions, sport, mobile phone, social outings, gifts, games etc.
Parents should always speak about the children budget on a regular basis to direct them in their decisions. When they become older, they will have more responsibilities. The intelligent teachings of teaching kids to be responsible for little will encourage them to be responsible when they get more.Reviewing the children budget with your kids will help them see where their money goes and if they are on target with goals they had set earlier in the year.
I urge kids to write down every expense they make in a book which they total and place in the appropriate category at the end of the day or week. This can help them to see what they have spent their money on. One simple way of saving money is by bringing lunch to school instead of buying it at the school canteen. You can save over $20 a week. Suggesting simple ideas like this can teach kids to prioritize what is more important to them and is useful when teaching about a kids budget.
When it’s Christmas or their birthday you may encourage them with their savings by matching their savings or doubling what they achieve so they can reach their goal sooner.
We need to teach budgeting for teenagers earlier in their life so they don’t put themselves at risk of living beyond their means
Budgeting For Kids Come to our website for more information. Educate your child about money and see their financial responsibility grow. Allowance for Kids is a topic that can taught easily and effectively.