Here is a creative idea for increasing your teen’s money management skills:
After many years of an inconsistent allowance system which produced uneven results in chore completion and school performance, a parent we know began a revolutionary funding program for her teen daughter. When Charlotte turned 13, she began receiving a quarterly allowance, instead of the standard $10 or $20 weekly allotment for completing required household tasks.
Four times a year, Charlotte knew she would receive $200 in cash. Additionally, this amount would be increased by $100 if her grades during the period were in the A/B range. This criteria was established well in advance, and was understood by all parties involved. In addition, Charlotte would be responsible for paying for most of her life needs, outside of the basic food/shelter requirements. Charlotte’s parents continue to pay for her shoes, required school fees and travel sports costs. Charlotte’s responsibility would include things like meals out with friends, sporting events at school, treats at the grocery store that mom was not inclined to buy, and the expensive jeans that Charlotte simply could not justify to her parents. These extras must be budgeted for and prioritized by Charlotte. Because when the money is gone, it is GONE until the next quarterly payday.
Mom reports that the results of this system are twofold. First, by holding Charlotte responsible for her own clothing purchases, she actually WEARS what she buys. No more closet full of items with the store tags still attached! Secondly, all the purchases Charlotte makes require a bit more thought on her part; she knows there is a finite amount of funding. She is learning to decide what is important to her and what she can live without.
Quarterly allowance amounts might be different in your family, depending upon your finances or what items you might require your teen to fund independently. Consider tweaking aspects of this system that don’t fit in with your family values. Finally, let your teen make mistakes. The only way she will learn that the $150 Coach purse is a poor financial choice is to let her buy it, then not have enough left in the purse for a movie with her friends the next weekend!
