Teaching teens financial responsibility

David Roberts, CPA, shares advice for parents on the best methods for teaching your teenage child about money, budgeting, and financial responsibility
Teaching Teenagers About Money and Financial Responsibility
KidsInTheHouse the Ultimate Parenting Resource
Kids in the House Tour

Teaching teens financial responsibility

Comment
207
Like
207
Transcription: 
When your children are a little older, financial responsibility is a little different than when they were younger. When they are teenagers, you need to start talking to them and teaching them financial responsibility before they go to college, before they go away. How do you teach a young, up-and-coming adult, how to become financially responsible? First of all, get them a checkbook and get them a credit card. In most states, they are not legally going to be able to go out and get their own checkbook, because they can't sign on a legal document. You get one, allow them to sign on it, and give them a stack of checks. What are they going to do with the checkbook? They are going to pay a bill. What bill are they going to pay? Every kid today has a cell phone. Let them pay the cell phone bill. You are giving them an allowance. Let them pay a bill, so they can start to see what they do comes out on a bill. If they are texting or talking to much and they have these overcharges on the bill, why are you paying their $150 charges, and yelling at them. Let them pay the bill. Also the same thing with a credit card. That's the time, when they are 16 or 17 and they get a vehicle or a car. Our deal was always, you can have the use of a car, but you have to pay for the gas. So they had to get a job, because allowance was not enough to pay for gas. Then they have to pay for gas. We got them a credit card, and I was a co-signer on it, but they used it to pay for gas. They had a checkbook, and they paid the credit card. That's the way to teach these up-and-coming adults financial responsibility.

David Roberts, CPA, shares advice for parents on the best methods for teaching your teenage child about money, budgeting, and financial responsibility

Transcript

Expert Bio

More from Expert

David Roberts

CPA

David Roberts has five children and lives in Southern California with his wife Cynthia, their dog Lucy, and cat named Cooper. Dave has always singled out being an involved parent as his most important life’s work while managing the job responsibilities of being managing partner of his CPA firm, RBZ, LLP in West Los Angeles.

 

More Parenting Videos from David Roberts >
Enter your email to
download & subscribe
to our newsletter