Money management for teens



Money management is not a subject you find on any UK school curricula, so the responsibility of ensuring your teens are prepared for managing their finances when they leave school comes down to you, the parents. Here are some ideas that will help teach teens the importance of good money management

Games

Most teens like online games and sites like this one have free games that teach teens how to manage money. One of the games, ‘Financial Football’ requires teens to answer money questions before being allowed to move on the field.

Monthly budget

Rather than handing out cash when they want something give your teen a monthly allowance and tell them they have to control how and when they spend it as they won’t get anymore. If they choose to spend it all in the first week you must stay strong and not give them any more. Its amazing how quick they can learn how to budget when they have to!

Clothing allowance

Rather than just paying out whenever your teen wants a new pair of jeans or a top they simply ‘must have’, work out a practical amount for the season and put it on a pre-paid card for them. By having an allowance it will make your teen more careful about how and what they spend their clothing allowance on and will encourage them to shop around for the best deal.

Give them a project with a budget

This could be planning a holiday, getting a new mobile phone contract, or doing the weekly food shop. By telling them exactly what you need and giving them a budget it will encourage them to explore different options. You could also give them a financial incentive if they come in under budget!

Review their spending

When they have monthly allowance ask your teen to keep a list of everything he spends his money on. Although it’s a pain to do when they review it at the end of the month they will be surprised at how much money they have wasted and where they can make small savings.

Budgeting may not be a priority or seem very important to most teenagers but the earlier they learn the importance of managing their money the easier they will find it when they start working and earning a living.