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

easter fun
& crafts

Egg-cellent ideas
for tons of
Easter fun.

GO

highlights

Healthy Smile Checklist for Kids
Have better dental check-ups with this free printable checklist that helps keep your child flossing, brushing, and smiling! Brought to you by Philips Sonicare.

Kindergarten Readiness App
It's kindergarten registration time! Use this interactive kindergarten readiness checklist, complete with fun games and activities, to practice the essential skills your child needs for this next big step. Download the Kindergarten Readiness app today!

8 Easter Egg Decorating Ideas
Need some fun ideas for decorating Easter eggs with the kids? Look no further for colorful and cool designs!

7 Ways to Curb Kids' Exposure to Violence
American children are exposed to violence more often than you might think. Learn how to limit your child's exposure to violence and manage the mental health and behavioral effects it can cause.