Teaching Your Teenager About Budgeting

Budgeting is a way of life that every teen should learn when they reach an age where they can understand the concept of money. It is very easy to spend more money than planned if there is no budget in place. By teaching your teen the concepts of budgeting, you will help them to learn how to avoid overspending and how to make their money stretch – two valuable lessons that will come in handy during adulthood. Here is some advice to get your teenager educated about budgeting.

The first lesson in budgeting is to teach your teen how to document both income and expenses. Use your household budget as an example if you have one. Show your teen where your money goes, specifically. All necessary expenses such as mortgages or rent, food, utilities and car insurance get priority over the newest gadget on the market. Once the necessary expenses have been taken care of, a stipend of the balance can be put into a savings account for a rainy day, and then the wants can be addressed.

Teaching your teen how to budget and manage money properly does not have to be a nail-biting experience. If you find that your own budgeting technique could use a bit of work, why not share that experience with your teen? It is beneficial for your teen to learn from your struggles before they experience their own. Most of all, budgeting and being responsible with money is a life lesson that typically gets carried through to adulthood, and your teen needs all the help they can get.