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Step 1
Chances are your family may already use budgeting software. If not, then you should consider picking out budgeting software for your home use. There are many great ones on the market that will help you to not only track all the money spent, but also to plan short term and long term budgets. The teenagers will grab a hold of it because it is technology.
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Step 2
Let them do it. Let the teenager learn to use the budgeting software. Chances are they can learn it faster than you. Then you can sit down together. They can show you how to use the software and you can show them how the family money is spent. This will give them a true grasp of how much money is available as many families have the “I want” issue with teenagers who have no idea how to manage money.
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Step 3
As you build the budget in the budgeting software, allow the teen to create personal allot funds for each family member based on their age and needs. This should be used for cloths and personal products, so Dad probably gets less than Mom or baby and so on. Approve these amounts.
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Step 4
Set up a web bill pay service. Most budgeting software does this so you can have the teenager do this part too. Have them log in once a week and update their own personal part of the budget and pay any family bills online that they can.
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Step 5
It is important not to give the teenager cash in hand, at least at first. When they need to get clothes, go with them and use the debit card so that they are not inclined to make frivolous purchases. Once they have an understanding of money and have proven themselves responsible, you can either give them cash to go shopping or if you are gutsy enough, give the teenager their own debit card.
Comments
Biscuit4u said
on 1/5/2009 Great advice. I hate seeing teens that don't appreciate the value of a dollar.
AffinityThree said
on 1/5/2009 Excellent article with a lot of very useful advice!