As my boys grow into young men, one of the most important
lessons I can impart on them is to learn how to manage their finances. At 15 ¾
my eldest wants a job essentially for all the money he thinks he’ll make. His
need for money is to purchase all the things he wants now but as his financially
savvy mother I cannot simply sit idlily watching him mismanage money. This is a
transition for both of us, I need to trust that I have instilled good money
values and for him to have the confidence to make good financial choices. This
got me thinking, what expenses should parents cover, and which ones could teens
start handling on their own?
Clothing – Parents should buy the
basics—clothes and shoes for daily wear, church and seasonal apparel. My
husband and I give our teens a clothing budget at the beginning of the school
year to buy trendy or luxury items. This is two-fold, it gives them the freedom
to choose things they want while helping them see that some of their choices cost
more than their provided basics. This
teaches them how to budget and prioritize their spending.
Education-Related Costs – Parents should pay
for necessary school supplies, books, and any fees for extracurricular
activities that contribute to teen development, such as sports, art, or
academic clubs. However, if our teens want to participate in non-academic
activities, they must fund half the expense. Contributing to the program or
event makes them accountable and more likely to follow through with
participation.
Transportation – Many teens in Virginia start
driving at 16 and parents often cover the costs of car insurance. While we
won’t buy our teens cars, my husband and I will allow them to use our car with
the expectation that they will pay for the gas or electricity they use and help
us with general car maintenance. This will help them understand the costs
associated with driving and the responsibility that goes with it.
Personal Spending – Parents should not pay for their
teen’s entertainment. It is the responsibility of my teens to know how much
they have and if they can afford to go out with friends or if they have enough
money to buy a video game. My husband and I also expect our teens to cover
their entertainment subscriptions and contribute towards their cell phone bill.
This also teaches them to ask themselves, “do I have the money to buy it?”
While parents may be in a good financial position to support
their children into adulthood, it is crucial to teen development to learn how
to handle their own money. What many teens don’t see is how much their parents
pay for necessities, such as food, housing, utilities, and health insurance. So
go on and cajole your teens to get a job and watch their face when they open
their first paycheck and realize that regardless of how much they worked, they
may not take home a lot of money – yet another financial learning moment for
another column.
