Home > Teens > Teen Values and Responsibilities > Teens and Money > 5 Steps to Teach Your Teen to Budget
|

5 Steps to Teach Your Teen to Budget

Help your teen look at the big picture before they get a surprise in the form of credit card bills, bounced checks, or automated teller machines that refuse to surrender cash.

College students' budgets shouldn't be complicated. Simply follow these steps.

1. Work together to itemize your student's regular monthly expenses.

2. List total income, including money previously set aside, scholarships, loans, allowance or perhaps wages from a part-time job during school.

3. Subtract expenses from income to see if the budget is reasonable.

4. If the expenses outweigh the income, work together to trim expenses until the numbers agree.

5. Your teen's college budget should include a savings strategy. Encourage your kids to make regular deposits into a savings account for future expenditures (such as a car, an apartment, or student loans).

You may want to sit down together periodically to review the budget you've developed. Be sure your kids understand the importance of maintaining this budget to avoid overspending and debt trouble. But also remind them that it isn't carved in stone. If their favorite band is coming to town and they want to splurge on a concert ticket, they can simply cut back on other expenses for a month.

Brought to you by College Parents of America.

Source: Money Talks, Co-sponsored by MasterCard International and College Parents of America

More on: Family Finances

|


stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Twitter icon Follow Us on Pinterest

editor’s picks

get ready for school!

We’ve got your
shopping list,
lunch menu,
and more.

GO

highlights

Join BIC on our mission to save handwriting and Fight For Your Write! Writing helps kids become better readers, boosts their confidence and sparks their creativity. Visit BICFightForYourWrite.com to sign our petition to save handwriting!

7 Tips for Reading Aloud to Babies & Toddlers
The AAP advises reading aloud to babies and toddlers because it boosts brain power and has many other benefits. Get some tips for making the most of story time with your tot!

Kindergarten Readiness App Wins Gold
Our Kindergarten Readiness app won the Gold Award of Excellence in the educational category at the 2014 Communicator Awards. This valuable checklist comes with games and activities to help your child practice the essential skills she needs for kindergarten. Download the Kindergarten Readiness app today!

How to Survive Summer Boredom
When the kids are home all day, every day, summer boredom strikes hard and fast. Learn the best summer boredom busters and tips for surviving until September.

12 Birthday Party Favors that Won't Get Thrown Away
The next time you're planning a birthday, forgo the penny candy and cheap toys. Send your guests home with one of these fun and creative party favor ideas!