Movies. Coffee. Gas. Shopping. Teens often have more expenses than younger children, and your child may be coming to you for more money more often. But with you holding the purse strings, your teen may have difficulty making independent financial decisions. One solution? Encourage your teen to get a part-time job that will enable him or her to earn money for expenses. Here are some things you might want to discuss with your teen when he or she begins working:
Agree on what the pay should be used for
Now that your teen is working, will he or she need to help out with car insurance or clothing expenses, or do you want your teen to put aside a part of each paycheck for college?
Talk about taxes
Show your teen how FICA taxes and regular income taxes can take a bite out of his or her take-home pay.
Introduce the concept of paying yourself first
Encourage your teen to deposit a portion of every paycheck in a savings account before spending any of it.
If your teen is too young to get a job outside the home, he or she can make extra cash by babysitting or doing odd jobs for you, neighbors or relatives. This money can supplement any allowance you choose to hand out, enabling your young teen to get a taste of financial independence.
Did you have a job as a teenager? Let us know in the comments below!
Image Credit: guardian.co.uk