by Hope
Back in October, I wrote about my teens getting their first jobs and thus first checking accounts and our plan of action…you can read that post here as refresher. I am so happy to be writing that we seem to be on the right path and it seems to be working, better than I could have expected. To summarize, here are how their bi-weekly paychecks are broken down:
- 25% – in cash in their pocked to spend however they like although it must cover meals out with their friends, dates, etc. pretty much their entire chosen social life
- 25% – into their checking account and only used for “bills.” Bills include their personal hygiene, clothes and other regulated expenses that come up. I let them use this money when they are out with one of their activities and need a meal or spending money for a specific item as well.
- 50% – into their savings which is ear marked for college and not to be touched.
With this plan they typically have $15-25 to spend per week AND more importantly each of them has almost $500 in the savings accounts…in just 3 months. They are LOVING seeing that amount go up every time we go to the bank. They’ve also been able to buy some new clothes they wanted, including work clothes and shoes, pay for their own haircuts (Sea Cadet needs them quite regularly) and really enjoying have a “card” of their own.
I think one of the biggest reasons for our success is that we set the plan in place from the beginning and have not wavered. After three months, they’ve got a pretty clear picture of what qualifies for each of their spending categories…whether it needs to come out of their fun money or they bill money and have been very dependable in being faithful to that. I am so, so proud of them.
They are already talking about working full time when they can in the summer, filing their taxes and paying for their “prom” tickets this year. So despite my challenges and failures in managing my money, I think my teens are starting off on the right foot and really learning the value of work and money with these small successes.
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 3 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
That’s really wonderful! Congrats to your teens on their success!
You’re definitely doing right by your boys! It’s great to hear that they’re learning the value of money AND saving. It sounds like they’re enjoying the freedom of having some spending money as well as the satisfaction of seeing their savings grow. Good for you!
Yes, they are, and learning lots of lessons with it. Like if you go out and buy an expensive meal one weekend…the next you can’t take your girlfriend out for Valentines. And also that a commitment is a commitment…you can’t ask off work the days before Valentines because you forgot to plan ahead. Some of them are pretty tough for them to stomach, but I am consistent at explaining and I really think they are getting it.
I think this is great, Hope! These are what are called “natural consequences” and serve such a valuable lesson! It’s got to be TOUGH for a teenager to learn lessons like this, but much much easier as a teen when the big thing at stake is simply a Valentine’s dinner versus as an adult where the stakes are much higher (e.g., if you spend money and can’t pay rent, you’re evicted and become homeless, etc.)
Yeah for all 3 of you!
That’s great Hope! I’m so happy for your and your kids. That is a great way to start them off right with their financial management!
Yes, Kayla, I certainly hope they are able to stay the course. But I think being relatively open about the position we are in and what it’s going to take to get us where we want to be will be a good learning lesson for them. And God knows, we talk about it enough with all sorts of variables.
What a great idea. I especially love that you had a plan before the kids started the job and got used to having a whole lot of extra money. I also think it’s really inspiring to hear you say that despite the fact you struggled a bit with your own finances you recognized the importance of teaching your kids differently. There are many, many people who would instead say, “I don’t know how to teach this, I’ll let them figure it out on their own.”
I think having the plan first is what made the difference! As you said, before they got used to having all this free money, there were boundaries so I never really took anything away. And they are so motivated to keep working. Just yesterday we sat down and did the math of where they would be if they worked full time for 12 weeks this summer. It was a fun exercise and they were like…whoa!