For a long time, my goal as a parent was teaching kids how to track their money before they start earning paychecks. Starting with a part-time job or an allowance, teenagers should understand the benefit of setting up a budget that documents how much money is coming in and how much is designated for savings and spending.
We as parents can also show our children a similar budget to our own by creating a fictional scenario of an income and living expenses - bonus points if it's based on the teen's wanna-be profession and living location. It can also help to have a teenager be responsible for funding part of their lifestyle to help teach the value of money – i.e. school supplies, new clothing, weekend entertainment.
“When they make the connection that they will need to take out the trash to get more money to spend, they will make the connection between working and money and not spending other people's money," said Gregg Murset, a CFP, and founder of chores app BusyKid.
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