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

thanksgiving crafts & recipes

Make this Turkey
Day fun for the
whole family with
these essentials.

GO

highlights

3 Fun Thanksgiving Games for Kids
Looking for some great Thanksgiving games to play with your kids? Print our free Pin the Feathers on the Turkey game, Pin the Hat on the Pilgrim game, and Thanksgiving Parade Bingo game for loads of laughs this Turkey Day!

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!

Top Family Movies in Theaters for the Holidays
Taking the kids to the movies is a special family treat for the holidays! Don't miss 2014's best family films in theaters from Thanksgiving through Christmas.

Find Today's Newest & Best Children's Books!
Looking for newly released books for your child? Try our new Book Finder tool to search for new books by age, type, and theme, and create reading lists for kids!