What's a good way to teach an 18 year old how to budget and spend?
My daughter just turned 18, and I'd like to teach her how to budget, now that she's going off to college and going to live on her own. I'm not sure, though, if she's ready for the responsibility. When should I let my teen take over the family budget in preparation to live on her own?
Right now! Make her write down everything she buys and categorize them. If she has bills she has to pay that's the top priority then checking how much she spends on other fixed expenses. If she has a job or planning to get one this is a must need for the future.
In her sophomore or junior year of high school. Budget l01 - if you don't budget she needs help from someone who can help her set up a budget with her. She needs a savings account, a debit account, and a checking account so she can pay her bills. Teach her how to write a check if she didn't learn to write one in high school - a receipt holder for all her educational bills because those are tax deductible and a notebook she can keep track of what she is spending her money on. You can talk to other college aged kids and find out they spend each semester. When I took my daughter I sent her with all her personal products that she would need for the first semester and then we adjusted it after she finished her first semester. We also got things like soups and easy things to heat up in a microwave in case she missed the meal times at the cafeteria. It happens - late class - held late - miss dinner. Good luck. PMathis RN BSN MSP DC
If you are giving her money for each month, make sure you stick to that amount. If she is running out by week 2, she will realize she isn't doing a good job and will have to revise how she spends her money. It will be a lot of trial and error. My 20 year old sister still says that she doesn't know the value of a dollar. And it's because she's never needed to hold back and save for anything. Encouraging her to save the extra money at the end of the month for something special would be a good idea, instead of just giving her that money when she wants it.
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