Money Management for Teens Who Have Jobs

Let's face it, some teens make more money than I do. This can be good, if they save. They can end up with a good start at supporting themselves. They also will be learning responsibility, which is always good. But, there are some 'not so good' points to teens working too much, such as smoking, having enough money to buy drugs, and exhaustion.

With all the added problems of teens having money, is letting them get a job worth it? I think so. Balance, in anything with a teen, is the key. Setting up the rules beforehand and adjusting them as you go along will introduce this balance to your teen, and make your life easier.

Here's how I've set up the rules with my teens that work:

• They get a bank account, one I can check on if need be. I also insist on a MAC card, I do not dole out money when the bank is closed.
• They save half of everything they make for their future. Either for college, or for a car if they are going to start working after high school.
• They save 80% of the other half for something they want now. Something BIG, ie TV, CD player, it is great if it's something they can use when they are on their own. If you have a daughter, introduce the concept of a hope chest. They can purchase things they want for their home. Girls really get into this, and it makes for fun mother/daughter shopping trips! If they tell you there is nothing they want, suggest something. I'm sure you can think of ten different things that they need, and really don't want to purchase themselves. I bet they come up with something quick!
• If the other 20% is $25.00 or under, let them blow it. This is the figure I strive to arrive at, so if your teen makes more, adjust the percentages accordingly.
• They keep a record of everything in a folder, one column is how much they made, the next column is how much is half, that is saved and the next column is the amount that is over half that is saved. This folder is put somewhere in the house where it is accessible to me. And I DO check it frequently. If your teen is upset because he feels this should be a private matter, between him and his bank account, let him know he can have as much privacy as he wants when he moves out. Say this humorously, but mean it in this area. I am a firm believer in trusting my teens, but only in areas where I can catch them if they fall. Money is not one of those areas.

This folder has an added benefit. Even though you have not allowed them to much room to make mistakes here, you can praise them for keeping it up.