Money-Management Strategies for Kids and Teens
PUTTING IT INTO PRACTICE:
Step 1: Make it understood that you, as a parent, have their “needs”—food, shelter, clothing—covered (within reason). Sometimes younger kids have the mistaken impression that Mommy is buying whatever she wants all day long—at the grocery store, at the gas station—so make it clear that those purchases are family necessities, not personal desires.
Step 2: Put them in charge of their wants (again, within reason). If they want to go to the movies with friends, buy the toy they saw advertised on TV, or get a new pair of jeans even though there are two perfectly good pairs in the closet, it will have to come out of their “spending” bank. If there isn’t enough money in the bank to fund all the things they want right now, they’ll have to figure out how to budget accordingly.