For most teenagers who grew up in a consumerist environment, Expense It has become second nature. With endless wants, ways to spend and peer pressure, money demands often get out of hand. This can throw financial discipline out the window, not just for the child, but for the entire household. Worse yet, the child may grow up to become a financially irresponsible adult. Therefore, it is important for the parents to curb unnecessary expenditure and inculcate accountability in the child. Here are some simple tips and strategies that can work to discipline your teen’s money use and habits.

1. Juvenile Ledger

If the child has entered his teen years and demands growth allowance, ask him to start and maintain a ledger in which he records his monthly expenses under various items like eating out, entertainment, gadgets, accessories etc. If he is comfortable using an app for this purpose, encourage him. After 3-4 months, sit with him and analyze his spending pattern and total monthly requirement. Let him figure out where he spends the most, where it can be avoided, and how much he can save. Allow him to state his case for the increase he wants and, if the reasoning is correct, allow him. If demand doesn’t fit your budget or is unreasonably high, set your limit by explaining why you’re reducing it.

In any case, make the ledger conditional for the distribution of allowances each month. This will not only make him prioritize his expenses, but also allocate a specified amount for various items, a budget Habit that will stand him in good standing as an adult.

2. Don’t dictate or interfere

Once you give the teen an allowance, don’t micro-manage or direct his expenses or force. Savings, Give him the freedom to spend as he pleases and don’t criticize right away, even if the choice seems wrong or wasteful. Make suggestions later without overwhelming the child. On the other hand, if the teen runs out of money in the middle of the month, be firm about not supplementing it. Let him wait for the next month’s allowance. This will teach him how to manage a given amount over a specified period.

3. Lending and Borrowing Rules

If your teen has a habit of helping his friends by lending money regardless of getting it back, deduct the amount of his monthly allowance until he recovers it. If it affects his spending power, he will learn to value it. On the other hand, if he starts borrowing from his friends, find out if he has run out of money or his needs have increased. Increase allowance if necessary.

4. Value for money

One of the best ways to give a child value for money is to make them work for them. Don’t pay him for simple chores around the house or tasks that should be part of his daily routine anyway. Instead, choose activities that involve a little hard physical or mental exertion. Depending on the age of the child, these tasks may include washing the car, getting groceries from the market, tutoring neighborhood kids or planning a vacation. The more effort he puts in, the more he will value his earnings and spend it carefully without being careless or extravagant.

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Disclaimer: The advice in this column is not from a licensed health care professional and should not be construed as psychological counseling, therapy or medical advice. ET Wealth and the author will not be responsible for the outcome of the suggestions given in the column.