Bianca, a 15-year-old girl, is tired of her mother not understanding her needs. While her mother, Jane, 43, is complaining that Bianca is overspending and her needs are useless and endless.
Alex, 17, is angry that his parents are not buying him a car of his choice. His parents just got unsecured bad credit loans for a house repair and are currently in debt. Naturally, they can’t afford it.
Rory, 19, is working part-time at a local store, and she is in a fight with her parents because they wouldn’t let her spend all her own money to buy a new gown that she wants more than anything.
Teenagers huh! Every day new struggles, new complaints, and a new war against parents. Every day a new phone, a new fashion, a new trend comes in, and they just have to have it because they don’t want to be left behind.
Parents try their best to provide, yet it is neither feasible nor right to give everything they want. According to a new study done recently, the average teenager, both male, and female, in the United Kingdom spends £54 every week.
The data sums up to £1.7 billion in contributions to the UK economy each year.
Most teenagers spend over 60% of their weekly income while saving the remaining 40%, which is set aside to buy expensive things.
It is Parent’s Responsibility to Teach Finance to Their Teenagers
It is true parents’ responsibility to meet the basic requirements of their kids, teens, or a toddler. However, it does not mean that everything they ask for should be fulfilled. So, it becomes the first and most important responsibility of a parent to teach the value of money to their teenagers.
If you have not taught your kid the importance of money or its management yet, now is to begin. The earlier you begin, the earlier they understand the value of being thrifty.
You must assist your teenager in comprehending the significance of being financially responsible and making careful choices when it comes to spending money. You can begin by including them in discussions about making monthly budgets.
Teenagers are no longer children, yet they are not grown enough to be referred to as an adult. Inquire about the expenses they expect to make in the coming week and month. Ask them to prepare their own budget if they are doing part-time jobs somewhere.
Take it slow, and you can’t make a kid responsible in an hour session, so make finance meeting a daily or weekly thing, so they feel included and not attacked. Ask them to work on their financial goals and plans.
Teach them savings and money management or be prepared to see them taking for a long-term loan for the unemployed. Teens have greater purchasing power as they are always in touch with the latest trends, the internet, and hip-hop culture.
Therefore, the parents must guide their adolescent kids to practice dealing with money responsibly.
Source of Money
You may be surprised to learn how much they have access to. Their significant sources of money are the following:
- Pocket money: These are the primary source of money for any kids.
- Part-time jobs: babysitting, newspaper rounds, working at a local store during summer, cleaning the porch, etc., can fetch them a lot of money.
- Money received on their birthdays or festivals like Christmas
- Allowance for doing chores
- They save the spare change after buying things for home-like milk cartons or cereals.
Regular Expenses
Adolescent age is the age of making all kinds of purchases, some useful mostly just to be part of trend and crowd. Some common expenses are listed below:
Car
Freshly gotten a driver’s license, they will ask for a car. The cost does not end at buying a car but fuel costs and maintenance every other day.
Encourage your kid to save for her first car, so he or she will be more responsible for maintenance and care. Other than that, the cost of insurance and many other unknown costs will come.
Outings
A teenager is never happy at home. Their top priority is hanging out and chilling with friends. How could they ever go out with empty pockets? Going to Clubs, evening games, a movie night, a pizza with friends, or just hanging out in the local mall, everything is going to cost money.
In addition, if it is a date, a whole week of expenses s going to go in one evening because your boy would take his girl to a special place.
Electronics
You want to stay updated, and you need all the electronic devices. A Smartphone, which will be lost soon, a headphone, some music or movie subscription they must have, and whatnot.
Computer, laptops, phone bills, and Wi-Fi are now a must for education and safety. It’s crucial to talk to your kid and explain using these with care.
Savings
Before you get your hopes up, a teenager saves money to waste most of the time on the most useless thing you can imagine. Kids underestimate the cost they are putting you through and refuse to save up.
Encourage your kids to save money for every expensive thing they want. If they want to go on a vacation with friends, save for it. Want a new phone? Save for it. Their savings must pay for anything extravagant.
It will teach them to be responsible.
Gender wise Spending Patterns
If we see closely, boys and girls spend their money in a little different way.
Typically, female teenagers prefer to spend their money on mobile credit, the latest clothes, different shoes, ice cream and chocolates, make-up and grooming, etc.
Unlike girls, boys like to spend their money on things such as mobile, food and drink, games, entertainment, sportswear, and shoes.
Conclusion
According to a new study, teenagers contribute £1.7 billion to the UK economy each year. According to the survey, teenagers spend almost 60% of their weekly income, including 2,000 young people aged 13 to 19.
Both boys and girls spend money in a variety of ways. Typical Expenses It’s a good idea for parents to have their kid pay her cell phone bill once she’s old enough to earn her own money.
If your child is saving for her first car, remind her that the car’s purchase is merely the beginning of the costs associated with owning one. One of the most major future expenses is college.
