Saturday, March 5, 2016

Transition More Spending to Your Teen

Money Clue

Teens have no clue about how much “real life” costs.

Not surprising. We only let them pay for the “good” stuff: fast food, movies, video games, music. Mostly “wants”.

If you’re paying for all their “needs” directly, it’s no wonder they have no idea how much real life costs.

The result? At best, a rude financial awakening as they exit the nest. At worst, crippling consumer debt as they belatedly adjust to life’s harsh economic reality.

There’s a simple solution.

As the teens get older, buy less and less of their “needs” on their behalf. You still provide most of the funds, but they make the purchases and track expenses versus a budget. Lynne Finch calls it the “semi-independent” stage.

It’s a smart way to give your teens a financial clue up front.

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