There comes the time in the life of every teenager when they want to have a little more financial freedom. Instead of relying on allowances to pay to go to the movies or out to eat, a better idea is to guide them into getting their first job.
My nephew is at that age. He's just champing at the bit to be able to have extra money to enjoy going out with his teammates every once in a while. Since he's the first teen of this new generation in our family, we (my sisters and I) gave him a few tips so he won't go crazy on a spending spree when he receives his first paycheck.
Learning how to create a budget. Have a conversation about what expenses they are responsible for now that they hold a job. Example of their expenses can be budgeting for their hobbies, brand specific clothing or shoes, gas money and extra expenses for extracurricular activities. Be explicit on what you as a parent are able and happy to pay for and what their financial responsibility is.
Open a checking account. These days, checks are not as necessary but it's a good lesson for them to learn how to write a check, use a debit card, and how the balance is affected with each transaction. Having their own account (with parental supervision) will also teach them about how fees associated with ATM cash withdrawal affect their account balance.
Setting money aside for a savings goal. This is one that I wish I had learned when I was a teenager. Do they want to save for a new car, spring break trip, or a gap year before going to college? Show them the concept of paying themselves first by saving a percentage, let's say at least 15% of their paycheck, is the first step to financial freedom.
Flex their charitable muscle. No matter how much or how little their paycheck is, it's always a good idea to share with them what a blessing it is to be able to give generously. Showing them that it's ok to be able to part with money to help others or causes that they are interested in, teaches them that money is not the most important thing in life.
Yoly Mason, a blogger living in Orlando, Florida, wants to live in a world where Latinas can enjoy an abundant life with a small budget, and being in debt is as out of style as the rotary phone.
Image via iStock
