Introduce the envelope system to your older kids for keeping track of their money. Take three envelopes and label them with Savings, Spending, and Giving. Try these awesome print off envelopes that also allow your child to write on them. When they add money to the envelope or subtract from it, they'll always know how much they have in their envelopes. This is also a good time to open a savings account for your kids. Whenever you go to the bank your kids can bring their savings envelope and put their money into their account. They will feel quite grown up.
Your teens will probably continue using the envelope system, because they've gotten used to using it over the years. But maybe they'd also like to keep track of their money in a balance booklet, which is a lot like a check book balance book, but meant for all the money that your teen brings in.
At this age you also want to teach them about balancing their checkbook and spending wisely with their debit cards. Plastic money cards are not the answer and are deceiving for many. The confusion all begins because people forget the feeling of money leaving their wallet.
Here is an example: If Todd paid for a $16,000 car on a credit card, he wouldn't feel the impact of the large amount of money leaving his bank account as much as he would if he paid for it in full, with cash.
Another creative idea for budgets for kids is to create a car savings plan. Tell your teen that if they save up for half of a car that you'll pay for the other half. Of course, make sure you set the max price you'd pay and then tell them if they can save that amount, that you'll pay the other half. This really gets teens excited.
Other Ways For Your Kids to Make Money:
Besides paying them a commission for doing chores, you could also set up a cork board with extra jobs on it. Call it the Work For Hire Board which will also allow them to make more money.
Your kids will be thankful that you took the time to teach them the importance of being smart with their money. If you follow these tips, your kids will be headed to becoming financially stable.
For more on budgeting and money planning check out Dave Ramsey's books and lessons.
Devin Berglund is an enthusiast for all things writing. On her free time she enjoys FaceTiming with her fiancé (who currently lives in Australia), traveling, and writing novels.
