How to Explain to Teens That They Need to Control Their Spending: Fiances, Control Over Spending and Teens

A teen is not always aware that all teenagers need to learn how to control their spending. Of course, there are exceptions. For example, a teen with parents who practice financial planning is likely to be more money conscious. A teen with personal income becomes aware of the need to control his or her spending, particularly when self-support determine his or her lifestyle..

Unfortunately, not all teens know the meaning of the word control when it comes to spending money; nor do they understand the importance of learning how to budget. 

The article, “Teen Budget: How to setup and use a teen budget” offers a sample budget form for teenagers. 

How to explain to a teen that they need to control their spending includes the following guidelines.

Parental sensitivity:

Most parents are loving, caring, compassionate and sensitive when it comes to the financial needs and the desires of their teens. Discussing the need for teenagers to control their spending, together as a family or on a one-to-one basis can benefit everyone. Parents need to know how their teens think with respect to their finances and the importance of control over their spending. 

Realistic money management:

Not all teens are realistic when it comes to money management. Being aware of his or her personal income, allows a teen to practice budgeting and money management, if he or she has not already learned to do so. Most teens have personal income from part time jobs, as well as money from their parents while they are in school. Learning how to budget that money appropriately is important. Maintaining control over spending is vital to financial survival as a teen and then later, as an adult. 

Realistic financial needs and desires:

A teen may or may not be realistic about his or her personal financial needs or desires. Parental guidance is important to help him or her discern between the two. Needs must take priority over desires in terms of expenditures for a teen to be able to survive financially. For example, while most teens have their housing needs met by their parents, when a teen has to take the responsibility for his or her food and clothing expenditures, it must take priority over entertainment. It is only a matter of time before a teen has to pay for housing.

Preparation for adult financial responsibility:

Teen financial planning leads to more responsible adult financial planning. While many parents set a good example for a teen, at some point a teen has to take over all of his or her personal finances. This is when the control factor becomes evident. Either a teen knows how to control his or her spending at that time, or does not. Ideally, there is still parental input or financial supervision. If not, a teen can get into debt beyond his or her ability to pay back.

Note that not all teens have appropriate financial backing and many have to learn to survive on their own financially, at a young age. While it is seldom easy for them, it is still important that teens surviving on their own learn to control their spending.