I think sticking to the plane is the most difficult part….it’s one thing to set up guidelines (boundaries!), but actually following through to the end can be our downfall. Just like with financial budgets, diets, career goals…it takes discipline!

Looking forward to more money tips from you

Here’s why I love the idea of tweens and teens being responsible for their cell phones. It helps teach kids to live within their means, pay bills, and budget. Here’s how it works:

Teaching kids for over 22 years has taught me that the best lessons are taught in the context of things that are meaningful and relevant to kids. And what is more meaningful and relevant to a teen or tween than their cell phone! It’s their lifeline to their friends. So we’re going to tap into this and sneak in the life lessons of budgeting and paying bills.

Talk to your child about the responsibilities that come with having a cell phone: not losing it, keeping it turned off during class and dinner, and making sure they have budgeted enough money to pay their monthly bill. If they sign up for a pay-in-advance service with unlimited text and talking and no contracts, you won’t need to worry about overage fees which can be ridiculously expensive. (I know. I have two teenage boys, each with expensive cell phone stories…both involving girls!) If they forget to pay the bill the consequence is they don’t have access to their phone. It doesn’t take them long to learn how to make sure their phone bill is paid!

And your idea, AnaMarie, about buying minutes is along the same lines. No minutes? No talking. Kids are quick to learn that they’d better budget their money correctly or they won’t have enough for their phone.

The parents role here is to stick to the plan. Don’t give in to your child if they don’t have the money to pay for their phone. It is critical that kids learn that when the money is gone, it’s gone. If you bail them out now, they’ll come to expect it. Do you really want to set yourself up for this? (By the way, a recent study indicated that over 40% of parents whose kids run out of money, succumb and end up giving their kids more money. Don’t do it!)

So, right on AnaMarie! You are definitely teaching your daughter to be responsible by putting her in charge of her cell phone.

This sounds like the perfect way to balance giving your kids what they want (and need) with teaching them the way the world works. Plus, don’t kids value the things they bought with the money they earned? That seems to be the consensus, from what I hear

Six years old is a great age to start an allowance. You’ll find that once given the responsibility of paying for her discretionary items (gum, stuffed animals, etc.) she’ll catch on pretty quickly. If you’re out and about and she asks for something your answer will be, “Sure, do you have enough money to pay for it?”

A good rule of thumb for determining the amount is to start with half her age and then add on depending on how much she will be responsible for. So, begin with $3 per week. If you find that she’s needing a little extra you can add more. But don’t add so much that she can’t experience the life skill of creating a goal for something she wants to buy.

I agree with not having her pay for her school supplies yet. She needs practice just handling an allowance first. Giving them a budget for their school supplies and clothes is great for middle schoolers.

Good luck!

Karyn Hodgens
Money Management Educator, Kidnexions