There are lessons to be learned. No matter how much you try to school them, regardless the advance warning, despite all the “when I was your age” comments, young people have to learn for themselves.
And when the time comes during their teen years that they have to make decisions that can cost them money, they learn just how costly those decisions can be.
A family I know well enough to be related to (and am) is about to get a double dose of the money game. Two teenage daughters, with two months difference in their ages (they’re stepsisters) are entering into the world of higher learning.
It can be a great time, it can be a tough time. It all depends upon the decisions you have to make and how you do so.
Their dad has set them up to learn, with a little room to fail. They get an allowance, a decent one. OK, very decent. Each receives 40 times what I got at the best level I ever had. I won’t deny that times were much different and items much cheaper. It’s all relative.
Now comes the adjustment.
Until now, others have made many of their purchases for them. Food on the run, cosmetics, trinkets, or whatever usually has been more of a “gift” from others. They’ve been told that now that those expenses will be their responsibility. But the biggest change will be in transportation.
Now, they will both have a driver’s license. Their dad bought them a car to share, fixed it up with some nice added features and got them both a set of keys.
But he told them they would be responsible for handling the cost of fuel with their allowances. I suspect there will be a steady decline of some other purchases, beginning pretty soon.
So what comes next? A little exercise in budgeting, he says. They’re going to have to learn how to budget their money, because he added a stipulation when he set up their allowances: don’t ask anyone for money; you have your own, until it runs out.
I also suspect there will be some employment considerations, along with a push for an additional vehicle.
The lessons are just beginning.
Check the resources in KNOWIT.NEWSOK.COM/MONEY-OKLAHOMA to help you with your personal finances. There’s some pretty sound advice there, no matter your age.