Teach Your Teen Proper Money Management Skills

Benefit Your Child's Future, Help Yourself Out in the Process!

To begin with, when teaching anything to your child, no matter what age they are, you can not have a 'do as I say, not as I do' method. Therefore, you must set a strong positive example of what you are trying to teach. Yes, you- the parent- are a role model. (This means you cook healthy, home made meals instead of eating take out every night!)

Also, when your child gets older you can show them the bills. If your child has a wasteful way about them, usually this will change when they see how much things actually cost! By showing them the phone bill or the electric bill, you are placing a dollar value on those things they take for granted. If they still have an "I don't care" attitude, then you tell them it's time they start chipping in! Obviously you really don't want your 15 year old to start helping out with the bills, but the message works. (Bear in mind if your child is 18 or older and still living wastefully in your home, it's a different scenario altogether.)

Your teen knows about money, almost. They know that they would rather have $50 than $20 but not as much as they would like $100. When your child is a teen, they should have a much clearer understanding of the value of money. So let's cover allowance, because this is usually the teen's income.

First of all, nothing should be free. Your teen needs to earn their allowance, and should never have money 'just because'.

Similarly, your teen should not get paid for good grades. Good grades should be achieved 'just because' and you shouldn't be bribing your teen to get good grades. However, good grades can be rewarded financially, i.e. a 'pay raise'.

Now here is an example of a good allowance chart:

Do the dishes every day for a week - $5
Do your own laundry (washed, dried, folded and put away neatly) all month - $15
Keep your room clean all month - $10
Clean the bathroom (floor, toilet, tub/shower, sink, etc.) - $5 (nobody likes cleaning toilets)