Creating a Back to School Budget With Your Teen
Budget planning is a very important skill to learn, especially for teens. In most cases, schools only tell them to save money, but not how to budget and manage it properly.
According to a national survey of over 1,000 American teenagers, 74% of teens don’t feel confident or knowledgeable about personal finance matters. Whereas it is a vital concern for their future.
Parents should take responsibility and teach their teens to manage their money wisely to fill the gaps. You can start by engaging them to plan for their school needs. Here are ways to create a back-to-school budget in nine ways.
Set a Limit
Before planning a budget, teens should know how much they need to spend, whether daily, weekly, or monthly. It usually depends on the amount of money they receive from their parents.
Therefore, parents should actively advise and teach their teens about their spending, including minding their school needs, entertainment, and savings.
List Necessary Expenses
The next step is to make a list of necessary expenses. School necessities should come first, such as uniforms, books, stationery, and digital tools.
List Upcoming Expenses
Schools usually have some events for their students, such as school clubs or field trips. If your teen joins a particular school club, they may need to pay extra money to buy a uniform. The same goes for field trips.
Shop Sales
Teens should also know how the retail world works. Tell them the ideal times to purchase goods such as when most shops offer big discounts. For example, Black Friday, Christmas sales, or end-year sales. However, remember to remind them not to be impulsive and overspend their money.
Shop Second-Hand
Another way to spend less money on shopping is to go to flea markets or second-hand stores. You can give them some store recommendations near your place.
Encourage Contribution
Encourage your teen to take contributions at home. For example, assign them to do some house chores, like mowing the lawn, doing dishes, and so on. So, they know how to take responsibility and
Plan Now for Later
If your teen has something they want to get, tell them to prepare as early as possible. For example, if they need a computer or a car, they have to plan their budget from now.
Learn to Save
Teens should know the importance of savings for their future. Remind them that things don’t always go as they wish and that sometimes, urgent conditions happen unexpectedly.
Review The Budget Often
Parents should also review their teens’ spending regularly. Whether they act according to the plan or they overspend money on something.
Always recheck their cash flow, and advise them immediately if you feel something is wrong.
Conclusion
Teen years are the perfect phase to learn many things, including financial skills. However, they might make a few mistakes here and there.
Don’t be too hard when they make mistakes, since it’s expected to happen when they are learning something new. You can advise and give solutions so they won’t make the same mistake the second time. To learn more about money management, you can check out Millennials Money Management: The More You Save, The More You’re Safe
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