Thursday, 23 February 2012 12:06
Let’s face it, teens need and want money for a multitude of reasons including school activities, entertainment, electronics, gas…the list goes on and on. It may be difficult to decide whether to continue or maybe even start to give your teen an allowance. Here are a few items to consider:
Job vs. Allowance
First determine if they, and you, are ready for them to have a part-time or seasonal job. If the answer is yes, then you can reduce or discontinue their allowance. If you decide they aren’t ready for a job, continuing or starting to give them an allowance can be a great way to teach much needed money management skills.
If you were already giving your teen an allowance for chores, you may want to review them and possibly change or add more responsibilities for your teen to earn money. They may now be able to start doing their own laundry and help with cooking for example.
If your teen receives income from an allowance or from a job, you can then let them use their own money for their “wants” like entertainment, electronics, etc. This is a great way to teach your teen the value of money and help them decide what is a need vs. a want, plus it’s an easy way to be able to say “no” to their money requests.
Encourage your teen to open a savings and/or checking account so they are able to learn lifelong money management skills. You can easily set-up direct deposit or automatic transfers for their allowance and then help them set-up a budget based on their weekly “income.”