How to Teach Your Kids About Budgeting

Published on June 26th, 2018

You thought you had more time, but out of nowhere, your child is a teenager, driving, and asking for a credit card. It’s time to have a conversation about money and budgeting. Teaching your teen about money isn’t easy. But if you do it right, you can give them a foundation for financial success. Our credit union in Franklin Park has all the tips and tools you need to establish a well-rounded understanding of finances with your kids.

Help Them Manage Their Own Money

Encourage your teenager to get a low-maintenance, part-time job. If not, have them do chores to earn a weekly allowance. Parting with cash hurts a lot more if it’s your own money. By having a cash flow, they can learn to save money instead of quickly spending it all. This leads to our next tip.

Try Out a Budget

By introducing budgeting early and on a smaller scale, kids can get used to the idea of expenses and restrictions on spending. Help them choose different spending categories and how much money they want to allocate to each. These could include clothing, food with friends, gas, and savings. Call it a win if your teen successfully divides their money into categories and doesn’t ask you for extra cash by the end of the budget period.

Think About the Future

Eventually, budgeting will lead to conversations about long-term saving goals. Encourage them to consider saving for the future and even coming up with a plan to save for something that they really want.  This is good practice for the rest of their lives. And finally, once they turn 18, they can open a New Beginnings Account which is specifically designed to teach our young adult members the importance of fiscal responsibility.

If you have any questions about budgeting or opening a savings account for your teenager, the financial service representatives at our credit union in Franklin Park can help. Contact us today!


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