Teaching Money Management to a Disorganized Teen

Understanding the value of a dollar and how to make wise decisions takes time and experience which is why engraining these ideas at an early age is so valuable.

Our oldest son, Jake, is about to start high school. Man, it goes fast! He’s a good kid — he gets solid grades, excels in sports, treats his family and friends well (although questionable towards his little brother) and loves Jesus — but he’s disorganized. He’ll admit it. As one of his teachers says, “He shoots himself in the foot” with a missing answer or lost assignment. I know not all teens are disorganized, but I’ve heard from enough empathetic parents to know Jake is not alone!

But it’s time for Jake to grow up. My wife, Robin, and I have worked to teach our children to make wise money decisions since they were little. There’s nothing arbitrary about the timing of starting high school to add more responsibilities for Jake, but it seems as good a time as any. I’m confident that with simple expectations he can learn to be organized and disciplined with his money.

Up to this point, we’ve primarily emphasized that handling money even as a young child is all about prioritization. If you spend it “here,” you won’t have it for something else “there.” We’ve highlighted the uses of money: saving, spending, investing and giving. Understanding the value of a dollar and how to make wise decisions takes time and experience which is why engraining these ideas at an early age is so valuable.

So where do we go from here? Jake oversees his bank account now. We’ve laid out simple expectations for him to pay certain expenses. For now, we will deposit money into his bank account each month mainly for things we were already paying for him. Even if this money comes right back to us (such as for his monthly phone cost), the simple activity of making sure the money is available and getting his payment in on time is a habit-forming exercise. As he receives cash gifts and earns additional money through odd jobs, he’ll manage this money also.

This kid loves to run around in his socks, which means we are always buying socks. That’s on him now. Do what he will, but those socks come at a cost. Undoubtedly, he’ll make mistakes. He’ll be late on payments. He’ll probably overextend himself, and we may have to let him experience the pain of debt. And, it will all be worth it! I’d rather have him make mistakes now under our umbrella when the stakes are not so high. The repeated discipline of healthy money management at a young age has the potential to have big payoffs in Jake’s adult life.

Whether it is disorganization or other traits your teen naturally faces regarding money (selfishness, ignorance, procrastination), these are correctable with good habits and simple guidance. Just like your child learned to walk, he or she will learn to manage money.

Commit to “Train up a child in the way he should go, even when he is old he will not depart from it.” (Proverbs 22:6) …

And that is just one more Principle of Prosperity!

These are just a few ideas to help a teen become a confident, wise money manager. What about you? Share your ideas! Tweet me @onedegreesaffer or comment on Facebook @PrincipledProsperity7.

Anthony Saffer, CFP of One Degree Advisors, Inc. helps people who are committed to connecting plans for their finances, family, and future. Learn more at: onedegreeadvisors.com

Advisory services offered through One Degree Advisors, Inc. Securities offered through Securities America, Inc., Member FINRA/SIPC. One Degree Advisors and Securities America are separate companies.