Teach Your Teen How to Budget

There are several important things teens need to know as they grow up. While some things they have learned the easy way, others they might have to learn the hard way. One of them is budgeting.

Budgeting poses a challenge to everyone, especially to the uninitiated. So it is best that we teach teens the proper ways to budget to minimize the surprises they will get when their bills arrive.

Below are helpful steps on how teens can learn to budget:

  • Help your teen child in itemizing expenses every month.
  • Make a list of their total income, scholarships and allowances. Include the money they have set aside.
  • Subtract the total expenses from their total income.
  • If the expenses are higher than that of the total income, teach them on how they can trim down their expenses.
  • In their budgeting strategy, let them create a savings account where they can save for future expenses like an apartment, student loan or even a car.

You can do it together in a place comfortable and convenient for you. Make sure they understand why you have to teach them to budget. This will make them debt-free and avoid too much overspending.

If they want to buy something, they have to cut some of their expenses for a month and save some money for the thing they fancy.