The older children get, the more their toys cost. This is especially true for tweens who want the latest electronics. These big ticket items don’t always fit into a household budget. With tighter economic times, now is the perfect time to teach your tween about how to budget their income for the things they want.
The next time they want that high-priced pair of jeans or the latest toy is the perfect time to sit down and have a discussion about how to earn that item themselves. You should expect a little resistance at first. For them it may seem unfair that they should have to pay for the object when mommy and daddy have paid for everything else. It is at this point that you need to stand really firm on them buying what they want.
After the protests and standing firm on your word to have them pay for the desired item, sit down with them and develop a plan of action on how to reach the purchase price. Don’t forget to include sales tax. If it is an online order, make certain to include shipping costs. It is important to convey that the item costs more than just the listed prices.
Then have them break down the costs into what your tween will need to save each week to accomplish their goal. Write down the weekly amount so that your tween has a visible reminder of their savings goal. Post it in a visible location where they can look at it every time they are tempted to overspend their allowance.
You can easily set up a bank account for them to deposit their money. It is imperative that they have a visual record of them watching their money grow. Encourage them to place their money in the bank but don’t force the issue. If they don’t want to save that week, that’s fine. This is an important lesson in money management and saving for their goal.
If they do overspend, the budget schedule will have to adjusted. It is important not to criticize them or lecture them at this juncture. They are still learning. Let them learn from their mistakes on handling money. Just help them make the adjustments necessary. It will show them that it will take longer for them to reach their goal. It is a test of how badly they want those jeans or how badly they want that new toy.
Budgeting is a skill tweens should learn early on. This is one lesson that will stick with them the rest of their lives. Additionally, the tween will show an extra appreciation for the item they did purchase on their own. It will give them a greater respect for money and their things.