Description:
An opportune time to introduce your teenager to the world of money management is when he or she begins to want more things than ever before. With the desire for designer clothing, a computer, a car, or money for entertainment, you might need to renegotiate with your teenager exactly how much you are willing to provide. The amount of money allocated will vary, based on the financial standing of each family.
Sit down as a family unit to discuss the family budget and how your teenager fits into it. Explain how you allocate money, showing your teenager how much you set aside each month/year for clothes, entertainment, school supplies, pocket money, and his or her savings account.
Create a financial program in which your teenager can participate. Take the money you use for his or her purchases and open up a joint checking account and/or credit card. Each month your teenager has a budget that can be used on material items. Keeping a detailed report of every item purchased will help your teenager see exactly the value of his or her money.
Have your teenager record each receipt of sale to document his or her spending.