How can you have a track of pocket money given to your teen?
As your child grows, he manages his own expenses and decides where to spend his pocket money given by you. This might make you worry if he is utilizing the amount in the appropriate manner and you would be doubtful if they know the value of money.
You would not know if he is being wise on money matters or just spending it on unnecessary goods and items. And part of teaching your teen how to manage their finances comes down to being strict with the money you give them and not bailing them out if they overspend. Therefore, it might want you to have a track of their spending that is to be given to them periodically.
Preparing a budget: This is an important task for every person to do, to manage to spend and know where it has been spent. It would give your child a draft of his expenses and would know, how to manage money without running out of it till the month end or needing to borrow it.
In this way, even you would have a rough idea of what your child’s monthly overall expenses are. Children today are smart and table’s work on their tips. Ask your child to prepare a sheet on his/her phone showing all the categories and the amount to be assigned for each category for instance: Food, shopping, stationary, movie, gaming and others.
Maintaining the receipts: Teach your child to keep all the bills/receipts of every purchase of expense and have it collected. Ask them to present it to you by the end of the month so that you could help them understand the line of difference between needs and wants. Because, often children spend too much on apparel or entertainment without realizing, but the receipts can also help the parent to see if the child could be provided more for his high-end expenses.
Let use a Debit and not Credit:
Handing over pocket money in cash could have pro but truly many cons. So, give your child a debit card for his expenses and not a credit card. Explain to them what both mean and why debit is a better choice until they start earning. You could fix a limit on his card spending and utilize the parental controls by keeping a pre-set limit. You could also provide them with prepaid cards and avoid over spending. This would let you be aware of all the exact areas of your child’s expenses
Go Digital: The best of the ways is going digital. The use of money tracking apps or money management apps is a unique way to spend wisely and have little savings too if possible at the end of every month. They are even called as your moving electronic wallets.
It saves as you would not even be worried about losing your money. You can set controls where your child could not spend more than a fixed limit under each category and not more than the specified amount per day. In this way, there would be proper organization, and nothing would come in the way from following the plan.
Most of the apps also have coupons of different cafes and restaurants including entertainment which could fetch you discounts. The food places will be the teenage preferred places mostly like pizza hut, dominos, donut house, etc. So, savings would be obvious.
Whichever method you choose, always make sure to be a great example to them. They will seek up to you when they face troubles. Promote saving habit among them along with managing money. If they witness you saving money to buy something expensive, they will try and do the same.
Children always try and imitate their parents. It’s better they learn when the amounts are smaller today than struggling tomorrow with overspending debts. So tougher today, free tomorrow.
1. Follow the budget prepared by your child or pre-set limit with the help of expense limit cards or apps.
2. Keep track of his spending by following the category expense sheet.
3. Use cards rather than cash, apps and promote savings together.