Of all the skills you give your children, budgeting is one of the most important ones. Being able to budget is essential to make sure you can pay your rent, cover the bills and eat every day, and it’s also vital to saving for events such as holidays or weddings.
Many teenagers grow up without much knowledge of the value of money – it’s very difficult to teach this until your child begins paying for things themselves. One of the most effective ways involves collecting together bills, bank statements and wage slips, and talking your child through how much everything costs. While you might be uncomfortable sharing so much information which your teenager, this will really show them how much everything costs, and how much spare money there is.
Encourage your child to start earning as soon as they can, even if they don’t earn much – employers will respect the previous experience, and that they didn’t just sit around with friends. Charge some housekeeping, even if you don’t need it – your teenager will always have to pay rent, or a mortgage, so getting used to this is important. Work out how much of your wage you spend on the rent, and charge a similar amount – for example, 10%.
Set minature challenges. Give your child £50 and a shopping list, and see if they can get everything on it, or set an online shopping challenge, to see how cheap they can make your shop. Look at the cost of holidays together, and show how you need to save a little per month to have enough to go.
Not only will helping your child budget help them in the future, but it will also take some pressure off you – once your child knows how fast you can spend a few hours, or even a days, work, they are sure to understand why it’s important to manage your finances well, so you can enjoy luxuries.
