For most teenagers, spending has become a second nature. With endless wants, spending avenues and peer pressure, fiscal discipline is an alien subject. Worse, the child can grow up to become a financially irresponsible adult. So for a parent, it is imperative to rein in the heedless spending and inculcate accountability in the child. Here are some simple measures and strategies that can work to discipline your teenager’s money usage and habits. (Compiled by Shaveta Dua/ET Online)
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Keep a record of monthly spends
If the child has stepped into his teens and demands an increase in allowance, ask him to start and maintain an account book, in which he records his monthly spends under various heads like eating out, entertainment, gadgets, accessories, etc. If he is comfortable using an app for the purpose, encourage it. After 3-4 months, sit with him to analyse his spending habits and total monthly requirement. Let him figure out where he spends the most, where it can be avoided, and how much he is able to save. Allow him to state his case for the increase he wants and if the argument is sound, allow it. If the demand does not fit into your budget or is unreasonably high, set your own limit by explaining why you are scaling it down.In either case, make the account book conditional to the disbursal of allowance each month. This will not only make him prioritise his spends, but also allocate a specified amount for various heads, a budgeting habit that will stand him in good stead as an adult.
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Don’t be a control freak
Once you give the allowance to the teen, do not micro-manage or dictate his spending or force savings. Give him the freedom to spend at will and, even if the choices seem wrong or extravagant, do not criticise immediately. Make suggestions at a later stage without overwhelming the child. On the other hand, if the teenager runs out of money mid-month, be firm about not supplementing it. Let him wait for next month’s allowance. This will teach him how to manage a given amount in the specified period.
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Borrowing & lending rules
If your teen is in the habit of helping out his friends by lending money without bothering to get it back, deduct the amount from his monthly allowance till he recovers it. If it affects his spending power, he will learn to value it. If, on the other hand, he starts borrowing from his friends, find out if he runs out of money or his wants have increased. Raise the allowance, if necessary.
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Earning money
One of the best ways to make a child value money is by making him work for it. Do not pay him for doing simple chores around the house, or tasks that should be a part of his daily routine anyway. Instead, pick activities that involve slightly harder physical or mental labour. Depending on the child’s age, these tasks could involve washing the car, getting groceries from the market, tutoring the neighbourhood kids, or even planning a holiday. The greater the effort, the more he will value his earnings and spend it carefully without being reckless or extravagant.
