We’re so close to the end of the month, but does your teen have enough cash to last through this final week? If they find their money is dwindling, it’s not too late to polish their money skills and make a budget. We suggest working with teens to create a budget at the beginning of the month and sticking to it as a way to teach your kids money management. But if they’re in a pinch, here are our top five tips to help them through to the end of each month.
1. Know how much they have
Get your teen to tally up how much pocket money they have left. This will give them an idea of the amount of money that they have to work with for the rest of the month. This can be done easily usingÂ goHenry, as all their spending data is displayed in a really simple and visual way. RemindÂ your teen that they should only account for money they are certain to receive. Counting on money that may or may not come in is a risky strategy and one they should avoid.
2. Calculate expenses
What are their fixed expenses for the remainder of the month? Anything along the lines of lunches and travel expenses are a fixed expense. Make sure teens account for these expenses first, before spending on less important items like fast food and cinema tickets.
3. Review their spending
Have your teen look back on what they spent their money on during the previous month. Reviewing spending can be a great aid to seeing where their money is going. Work with your teen to show them patterns in their spending. This way they can better understand their finances in order to create a solid budget they can stick to for the next month.
4. Make changes
Did you notice any habits that are causing them to break their budget? If so, it’s time to make some changes. Help your teen to get into the habit of making short and long-term savings goals before they go shopping to reduce impulse spending and also looking for sales. Itemise their expenses with them to see what your teen could cut back on in order to save more each month. Do this towards the end of the month so that they can implement the changes straightaway.
We believe in order to understand the real value of money everyone needs to â€˜earn, save, and spend.’ While teens may have a grasp on making money and spending it, saving is an especially important habit for teenagers and money planning. Talk to them about setting aside a bit of money each month. Even if it’s only a few pounds, every bit counts in the long run. Savings can help your teens pay for larger purchases or be the beginning of a holiday spending money fund. Whatever the goal may be, setting achievable saving goals for both the short and long term is an essential part of getting there!
goHenry is a unique earning, saving and spending solution for parents with children 6 - 18. Start your free trial of goHenry today by clickingÂ here.