I’m surprised that so many of my friends and relatives are still doling out money on demand to their teenagers: $20 for pizza and a movie, $10 for a school field trip, $5 for lunch. If the kids don’t have a budget, how can they learn to live within one?
Maybe it’s time for a New Deal.
When I was 14, my parents sat me down and outlined our New Deal: They would double my allowance from 75 cents a week to a princely $1.50 (this wasn’t big money even back in 1971), and I would be responsible for buying my own clothes and paying my incidental expenses. My parents would continue to provide meals and a place to live, of course, and pay for piano lessons and medical expenses, but I was otherwise on my own. After some negotiation, they also agreed to buy shoes and winter coats.
You might think my 14-year-old self would have been upset. On the contrary, it made me feel grown up.
The New Deal drastically changed my attitude toward hand-me-down clothes from family friends. When it was my money on the line, those secondhand outfits looked a lot more attractive.
If you think your 14-year-old doesn’t have the maturity to manage all his money, try him out with smaller projects. Set a budget for school supplies or school clothes and let him allocate it — but be prepared not to kick in more cash if he makes mistakes, no matter how much he whines.
Give younger children a more limited budget with more limited responsibilities. Perhaps the weekly allowance covers toys and treats, or perhaps you provide a lunch allowance and let your middle schooler decide whether to spend it on school meals or keep the cash and make his own lunch every day.
Teaching your child to live within his means now will help him learn to live within his means later, not to mention emphasizing that the Bank of Mom and Dad does have limits.
