Teach Your Teen How To Budget

We have talked about teaching our teens to GIVE, SAVE and SPEND the money they earn.  We have talked about helping our teens learn the concept of living below their means.  

John Maxwell said it best, “A budget is telling your money where to go instead of wondering where it went.”  Can you imagine heading into adulthood and already understanding this concept and how to use the tools to accomplish it?  That is what today's lesson is all about.

Teach Your Teen How to Create A Budget

If you want the FREE Workbook to take our series and create your own lesson plan for your teen - click here. :)

A budget makes sense once you are in adulthood.  You have rent, utilities, groceries…bills.  As a teen… they have very little to worry about.  So, to help our teens learn to budget, let’s play pretend.

Step One - Create the situation

You can PRINT THIS WORKSHEET with amounts on them if they will help.

Just fold them up, put each category in a cup or in a pile on the table and have your teen grab one from each category.

Step Two - Create the budget to manage the situation

Now that they have numbers to work with, let’s create a budget and see if they can afford their choices.

To create a budget, I totally recommend just grabbing a piece of paper and letting them see the math in front of them.

Income – Expenses = ________________

Step 3 - Help them understand

If the number is a positive number, that means they can afford their lifestyle.

If the number is negative, that means they need to lower their expenses.  Have them look at their expenses and consider which ones might be too high and how they could make the number smaller.

Step 4 - Introduce them to Tools

There are a LOT of great budgeting software’s out there.

Every Dollar  - LOVE this one! It is FREE and great for accountability, as more than one phone can see where the budget stands.

A few others that have been recommended to me are :

YNAB – You need a budget

Mint

Truth be told, I use a good ol’ fashion excel sheet. 😊

WANT HELP? :)

LIFE 101 PRO provides monthly lessons to help teens prepare for adulthood, from budgeting to balancing life and many more subjects to make transitioning to adulthood easier.  Want more information?  CLICK HERE

Want to take the lesson a step further?

Have your teen look at the money in their budget for fun for the month.  Have them create something fun to do that will stay within the budget.  Not only will it give them one more step of application of using a budget, but also a glimpse into our teen's world of what fun looks like in the land of adulting… man, they grow up so fast!  You've got this!

On the journey with you,

Melissa, the mom behind LIFE 101 PRO, a membership site for homeschool moms and CO-OP leaders to help prepare teens for adulthood.

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