Teen Spends Her Paycheck in One Day

Hi K.,

We liked this book http://www.amazon.com/Motley-Fool-Investment-Guide-Teens/...

Blessings,
T. E.
www.LovinLifeWithHomeBiz.com
www.LiveWellShopSmart.com

Don't give her money during the week!!!
She'll learn that she will need that money to take care of herself during the week, and can't just spend it so quickly. Do you know what she is spending it on??
Don't buy stuff that she thinks she needs for a couple weeks; shampoo/conditioner, other hair products, snacks, (my daughter uses contact lenses) and when she says she needs them, take her to the store (when she gets her paycheck on Thursday, before its gone) and show her how to buy them herself. She will see how much it costs to have necessities.
I have 2 teenageers, and my oldest did the same thing. Her money came from her father(he decided to pay support to her, instead of me, so she was rich!!! $400 a month to do nothing!) This went on for 4 months, and she only has a winter coat and about 3 outfits to show for it!!! I didn't give her a dime during that time, and told her that she has the money to take care of herself, lunches out, dinner out with friends, gas money for friends. It went quickly. Oh, sorry, she did pay for her yearbook page, her own yearbook, and a volleyball sweatshirt.
She still has no money left, and this was how he wanted to show her how to use money.
I gave her some household bills to pay, but she never got around to them. Now, I give her nothing to help her, because she was told to save it and spend it wisely. I wont give in, and only buy the stuff we all use and nothing special for her.

I would strongly suggest setting-up a savings account for her and insisting that 1/2 of the check goes directly into that account each week- USE DIRECT DEPOSIT. This will get her into the habit of doing so. I would also have an honest conversation with her about the state of the economy today. It's no secret that we are in a bad spot as a nation b/c of frivolous spending. Have her keep a spending journal that outlines every dime she spends and talk with her about her entries. I would also suggest not giving her any money in between checks.

I know at that age my mother put me in charge of household bills. She would have me make out all of the checks, fill out the stubs, record it in the checkbook and then she would sit and sign them all. I have to say, this made a real impact on me and the way I spend money today. My sisters didn't have this chore and they still think nothing of buying little things all the time without thought.

Don't punish your daughter or treat her differently than your other children (if you have them), but definitely use this as an opportunity to teach her about saving, spending and being financially responsible.

Teen can be tough to get through to, but the best way is to not bail her out. When she runs out of money - she has no money. Don't give her any money. If she is supposed to be responsible for her own lunch money, clothest, etc. ... she doesn't have any that week. She will learn quickly as long as you stay strong and don't bail her out.

there are those bank like piggy banks that help spread it out, but if I were you I'd just teach her yourself...
%50 spend
%30 save
%10 invest
%10 charity (of her choice)
you can help her by planning it out with her...go over what she needs to spend it on(that goes with your house...is it just recreation or is she responsible for her own clothes etc...). Help her set up a savings account(put you on it too)and as a bonus for doing that you start her with the set up $$ either $50-$100...what ever the bank requires...then help her choose something to invest in...either bonds or a stock and help her pick a charity...something local if you can...
Good luck!!!

Don't waste anymore time being angry about the situation. Don't nag, don't make a fuss about it....instead calmly let her know you would be happy to teach her how to budget herself with the money she earns. Also stop giving her spending money when she runs out of her own and when she asks for something, tell her to save her money and buy it herself with the money she earns. Then ask her if she needs help learning how to budget the money she earns so that she can afford the things she wants to buy. When she says no, tell her "Sorry sweetie, but that's your choice...so be it."
If you sit it out, she might turn to you for that help in learning how to budget herself..

Get her a bank account! Set down some rules that x amount goes to savings and she can spend x amount. We also teach our children to give back to our church but you can substitute church for a charity (of their choise). A.

Larry Burkett has some wonderful books about money management, some especially focused on teaching children and teens about money. I don't know a specific title, but if you googled him I'm sure you could find a great resource.

I think the best way to handle this is to set clear boundaries on what you will pay for and what she is responsible for. When she runs out of her money for what she is responsible for then do not give her extra money to spend. If you stay firm and strong she will learn to spread her money out and budget herself. Just keep in mind that most activities and clothing are very costly today. You can hardly go to a movie without spending 15 bucks if you get popcorn and soda (maybe more I don't go that often) so I am sure she does not make that much money as a teen. All I am saying is be realistic when setting the boundaries. A trip to great adventure or the jersey shore could deplete one weeks pay for some kids. So once in a while she should be able to indulge just not everyday. I would stop nagging kids learn to tune us out (especially teens because they KNOW everything) but when the well runs dry she will surely listen. Good luck!!!

K.,
I don't know if she/he has own car. Do you drive them to work and back? In past I knew someone doing the same thing. Me. While living with my parents my father came up with a budget thing with me after he started making me pay rent and any extras I wanted. 50.00 dollars a wk for rent. 25.00 went towards my insurance after I got a car. To make it short I gave a hundred a wk to parents. He put most of it away so if needed gas for car or something I had it. Eventually I got my responsibilities of long distance phone calls we would add up and I would pay. The money I paid for rent before the car went towards the cheap car and did payments to my dad until paid off. So when I found out I paid for it all I respected it more. They need to learn. That is one thing I respected my parents for was there but taught in the meantime.
You don't have to take 100 a wk just take what you want and put away for them. Oh yes and you don't give extra in between. No money, no extra on the sides. They will learn need that money for certain times or certain days.
Good luck

I am sorry to say, but teaching kids the value of money should start when they are little. It's easier then because you are a much bigger influence on their lives. But as far as your daughter goes, don't enable her lifestyle. Does she get her nails done? WHo pays for it? Does she have her own cell phone? Does she pay for it? Do you give her money after she has spent all hers? If she drives, does she pay for her own gas or contribute toward insurance? You may want to have her start contributing to these kinds of expenses.

Sit down with her and tell her how much money comes into your household, and how much the essentials are: mortgage/rent, utilities, car payments/insurance, groceries, cable/satellite etc. Talk to her about what she is considering for a career and research with her what a starting salary for an entry level job is, and then how much rent might be where she wants to live. If she's planning on living at home, let her know rent will be paid if she is not enrolled full time in school, and she will have to pay for her own cell, car, etc. Some teens have zero clue how much basic living costs, nor how much they will get paid fresh out of high school or college. That might help.

Hi K.,
When my son works I make sure he gives me 1/2 his check which I put in his bank account.
Explain to her how important it is to save 10% of her paycheck.
If your child puts $100 in the bank from the time they are 17 to 65 they will have saved $4.3 million dollars.
Sit down and explain how the household works so she understands that she cannot just spend her whole paycheck. Otherwise she will never be prepared for the "real" world.
Good luck
J.

Okay so she is young and happy to be spending her hard-earned cash because she thinks she has an endless supply of paychecks ahead of her---it all plays in to her sense of independence, freedom, and fitting in right now. Don't get mad over it, just have a conversation with her about how it is time she gets some guidance about how to handle her money in a mature way because part of growing up and maturing is planning for your own future.

Does she have a savings account or an interest-bearing checking account? If not, can you take her to a bank and get her one very soon? Try to get her to commit to saving a specific percentage of her paycheck. If she resists then you might have to provide her with an incentive plan...like offer to match her savings funds but only if she leaves the money in for 1 year. During that time period you can have monthly money conversations with the bank statement in hand to show her the accumulated interest and how her money is growing.

let her know once she spends her money you will not give her any. she will broke until she gets paid. make her get money orders to pay her bills first.

I have a teenager too. My sugestion would be that if you want her to save for college, a car, etc, that you require her to hand over that portion of the paycheck. The rest of it, if she is allowed to spend it, she should be free to spend how she likes and deal withthe consequences. If you want her to put money into savings, you may have to demand that, and if she doesn't spread her spending money out, it's no one's problem but her own. Don't give her anything more. She can blow it all in one night, or spread it out over the week. A teenager is old enough to understand that if she's out of money, then on Saturday she is not going to the movies with friends - but if you bail her out by giving her more money when she runs out, then she won't learn this.
Good luck

This is normal for kids. You dont say how old she is, but if she has a job she should be paying for her necessities. If you give her money for makeup, food, cd's etc, why should she save hers? Sit her down and help her make a budget. Tell her you will no longer give her money for incidentals and if she wants to go to the movies on the weekend she better have the money for it. If she wants to go to an amusement park this summer she better start saving. Then close your pocket book and dont give in. She will learn after missing out on something because shes broke. It might hurt you in the process, but its better she learns now than when she is on her own and cant pay her rent.