Teens love spending money. And that too lavishly. There wouldn’t be a teenager present who does not enjoy spending money. As soon as they get pocket money from their parents, they instantly spend until they run out of it. Money comes into their hands one minute and flows out like water the next instant. Moreover, they tend to spend money on irrelevant stuff which will not be beneficial to them in the long run. Giving pocket money to teens becomes a huge financial responsibility for the parents especially when their teens are not spending money wisely. To prevent your teens from spending money aimlessly, you should advise them to spend it in a certain way. When teens manage the money wisely, they are more likely to become more responsible with money as adults. We have come up with various tips for parents so they can help their teens in spending money wisely. Some of the tips are mentioned as follows:
Recommend Job or Paid Internship
You should recommend your teens for applying for a job or paid internship during their summer vacation. Though they won’t be able to earn much out of a short-term job, working for a few wage hours would certainly make them realize the value of money. Before spending money on video games, surplus accessory items or lavish clothes, they may consider how much time they spent to earn that hard-earned money. Therefore, they will step back, spending less money on irrelevant stuff and develop a saving habit.
Needs vs. Wants
Make your teens spend money on things which they need rather than spending on things they want. Explain the difference between their needs and wants. Their wants can surely wait but their needs to be met sooner. Make a budget for them and highlight their needs and wants in two separate columns. This way teens will not spend luxuriously on items which are not necessary.
Monthly, Not Weekly
There’s a fixed amount of pocket money that you give to your teens every month. Make it a habit of handing over the pocket money monthly instead of weekly. Give them a certain amount and ask them to make it last an entire month. You may also encourage them to maintain a record of their expenses by writing down what and where the money has been spent.
There is a lot of chance that your teen might be tempted to spend extravagantly and buy unnecessary stuff. He or she might end up impulsively buying items. You need to make them understand that they can also save a lot of money if same items are bought during the sale period. Make them realize how much money they could save while doing this. Also, you can encourage them to do more outdoor or physical activities with their friends instead of shopping with them and spending loads of money.
Saving Is Important
Your teens should know why saving is important. People who develop the saving habit in their teens tend to become more responsible with money when they grow up into adults. Make your teens develop this habit so they can realize the real value of money. It is really important for them to understand not to spend frivolously and always consider the future when spending money.