Give them the freedom to spend the money as they wish and don’t act as a backstop for cash if they run out by the end of the week.
It should be based on how much your child reasonably needs each week for food, transportation and clothing. If having a regular job during the school year isn’t practical for your teen, I recommend structuring a set allowance. Teenagers today are spending more time in school and working on other (unpaid) activities to prepare for college or bolster their application. Now only about 36.6% of 16- to 19-year-olds work, according to U.S. Whether it was stocking shelves and delivering groceries, working in mom or dad’s office, or babysitting and tutoring younger children, learning the value of your own labor was part of growing up. With the bank of Mom and Dad, their mistakes have lower consequences, but these early lessons can be just as meaningful.īelow are some areas where you can focus your efforts.Ī generation ago, it wasn’t uncommon for American teenagers from all walks of life to do some paid work while in school or over the summer. I suggest that parents start slow, gradually giving their kids some control over their own finances by the time they reach their teens. It didn’t take six months for some students to run up crippling credit-card debt and ruin their credit ratings. I remember the disastrous outcome for some of my friends in college when some credit-card companies came to campus. The last one may be harder than you’d think. In college, they will need to be able to handle course work, health care and finances.
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Hopefully, by graduation they have developed a healthy attitude concerning spending and saving and a sense of how to make sound financial decisions. In high school, they should be gaining direct experience with financial topics, such as earning, borrowing, lending, donating and investing. While it’s important to start teaching your kids about money when they are young, it’s even more important as they get older.
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