Intentional finance. Intentional family. Intentional business.

Here's what's new:

How to Teach Your Teens About Budgeting

We have a teen who is earning money various ways and starting first part time job. We want to teach her budgeting. Putting money into a car, college, clothing etc. Do you have any suggestions of some proven methods of free spreadsheets or website to utilize with her? Need something so she can see savings progress and also what she is spending. -Laurie

What a great question, Laurie! It just makes my heart happy that you are teaching your daughter about budgeting while she is young. So many adults would be in a much better financial position if their parents had encouraged them to start budgeting from an early age.

Here’s my advice:

1. Set a Great Example

One of the best things you can do for your child or teenager to help them learn financial skills is to model great financial skills before them. Let them see you being thoughtful and intentional about your purchases.

For more encouragement, read my post on 6 Things My Grandpas Taught Me About Financial Success.

2. Talk About Finances Openly

Many families aren’t very upfront about their finances with their kids. And I think this does a disservice to your children.

I’m not saying you need to share all the details about how much you make and spend, but where appropriate, I think it’s so helpful to bring your kids into financial discussions.

For more encouragement, read this post on 4 Ways to Teach Your Kids Money Management.

3. Set Up a Budget Together

Help your kids set up a budget from the time they start earning money. You can use a basic budgeting spreadsheet like this one.

4. Provide Accountability

Remember: your goal should be to raise responsible adults not co-dependent kids, so don’t micro-manage their budgeting. Instead, just provide oversight and accountability for them to develop the habit of budgeting.

5. Let Them Make Mistakes

It’s easy and natural as parents to want to protect our kids from getting hurt or making mistakes. However, I’d much rather my kids make small mistakes when they are young in order to hopefully prevent much larger mistakes when they are older.