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Subject: |
Teaching Budgeting to Teens |
| Date: |
2009-10-14
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Teaching Budgeting to Teens
Hello Dr. Laura,
I just listened to the call where the mom asked your opinion of the $100 allowance to teach her 14 year old budgeting and responsibility. I can confirm that doing this worked so well with my two sons who are now 21 and 24.
When they were 12 and 15, we set up a checking account for each of them and simultaneously set up an investment account for each. I don't remember the exact amounts, but they were given, say, $75 and $100, respectively. Out of these funds, $40 was drafted from their checking accounts every month to their investment accounts. With the remainder, they were to pay for their entertainment, fun food, and non-essential clothes. When the money ran out, it ran out. If they bounced a check, they had to pay the fees. The allowances changed very little, just an increase for the younger one as he turned full-fledged teenager.
Fast forward to now: The allowances stopped when they turned 18. And now, ten years after starting that system, they still add monthly to their investment accounts. They still do this despite both the economy, and the various states of their respective employment/unemployment.
The older one is well employed after his secondary schooling and is maturing nicely. The younger is nearly finished with schooling, employed part time in his field of learning, and is a great source of pride as well.
I believe this system went a long way in helping them learn financial responsibility, hoping they'll be loving and responsible husbands when that time comes.
Thanks for doing what you do. We listeners learn new ideas or have old ones reinforced by your conversations on so many topics.
L.
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