Designer Jeans, Coupons and Budgets for Teens

Dr. Marian C. Fritzemeier, Ed.D. © 2013

Author, Speaker, Educator

"Why do we always have to use a coupon to buy my clothes?" laments my eleven-year-old daughter. "I want them today."

"You know we have a clothing budget. We can get more for our money if we wait until the item is on sale and we have a coupon," I try explaining once again.

"Everyone else's mom just buys their designer jeans even if they're not on sale," she retorts trying for the mother guilt button. 

But this conversation changed significantly one year later when our seventh grader was given her very own clothing budget. "Mom, do you have any coupons? I need some jeans," I proudly heard. She was allotted a monthly amount but could use up to three months of budget money at a time if necessary. Since our daughters were in year-round school, budget money for three months seemed reasonable.

No, we didn't just give our adolescents money and let them have a free for all. We talked about special events coming up, seasonal items like coats and swimsuits, what still fits from last season, do they need new undergarments, what about shoes, ways they can update their wardrobe inexpensively, and yes, how buying items on sale and using coupons saves money. Because they knew the cost of every item purchased, they took great care of their clothes when they began doing their own laundry at age thirteen (see previous blog, Laundry or Writing?).

As they entered high school and needed dresses for special events such as the winter formal and the prom, we paid for half the dress cost up to a certain amount. Young men will need additional budget money for winter formal sports coats and renting tuxedoes for the prom. When they wanted additional clothing or designer clothing items that cost more, they used gift money or worked for extra money. Other families we know paid up to a certain amount for clothing items, such as a pair of jean or athletic shoes, and the young person paid the difference.

I'm purposely not sharing how much money we gave them for two reasons. They are young adults and inflation has occurred since they were teenagers. Secondly, each family has an income; some may have a larger budget for clothing, while others families will have smaller budgets. You may think you can't afford to give your adolescents a clothing budget, but if you honestly track how much you spend on their clothes, shoes, undergarments, etc. it adds up quickly. The point isn't so much about how much you allot for their budget, but teaching them the principles of money management.

When you transition the budget responsibility to your young adults, please resist the temptation to rescue them when they spend all their clothing money and need something. They will not learn to plan ahead and use their money wisely if you rescue them. Keep in mind that they will eventually learn to live with the consequences if you allow them opportunities to learn. And in no time, they'll start asking, "Do you have any coupons?" and you will know you've done your job.

1. Image from: Stock.XCHNG www.sxc.hu/.sale-1430736-s. Accessed 4/17/2014.

 

Teens & Money Part 4: To Pay or Not to Pay?

Dr. Marian C. Fritzemeier, Ed.D. © 2013

Author, Speaker, Educator

College expenses are rising every year and both students and parents alike wonder how they'll afford a college education. If you have the finances to pay for your child's entire college expenses, please reconsider.

When Parents Pay. As a college professor I've witnessed the results of parents paying for their kid's entire expenses. These students are less responsible for their education because they have no vested interest. I hear students flippantly comment, "So what if lost my textbook. Too bad I failed that class. I can just take it again. My parents will pay for...".

Your Student's Share. Consider allowing your student to pay for certain expenses, such as their clothing, entertainment, car payments and insurance, textbooks, course materials, or even several of these categories. It will pay off in dividends. They will become more conscientious students which ultimately results in less overall expenses. When students are vested in their education, they're more likely to attain their goals in a timely manner.

College and Car Insurance. If your son or daughter is attending college so their car insurance is covered under your policy, within six weeks, most of them won't be attending classes. When I meet students each semester I share, "Your parents' car insurance won't motivate you to arrive twice a week for an 8:00 A.M. class. You must have your own personal reasons for obtaining a college education or you'll drop out."

College Drop Outs. Unfortunately many young people drop out of college. A new study by Harvard University reports that, "Only 56% of the students who enter America’s colleges and universities graduate within six years, while only 29 percent of students who enter two-year programs complete their degrees within three years, the study found."¹

Expectations: Raising financially responsible young people is possible, but requires advanced planning. In order to train your son or daughter, you need to know what your financial expectations are for your family. Then together with your young person, you can create a financial plan that works for everyone.

Sources: 
1. Study: Nearly Half Of America’s College Students Drop Out Before Receiving A Degree, Travis Waldron on Mar 28, 2012, thinkprogress.org/education/2012/03. Accessed 6/10/2013.

2. Image from: Stock.XCHNG www.sxc.hu/ accounting-calculator-and-planner 90371-m. www.whitespark.ca. Accessed 4/18/2014.

Teens & Money Part 3: To Work or Not to Work?

Dr. Marian C. Fritzemeier, Ed.D. © 2013

Author, Speaker, Educator

 

Maybe you've asked yourself, should my teenager get a job? If and when your teenager gets a job is a controversial decision. Many parents don't want their young person to work and focus only on school. Others expect their teens to work and contribute to the family's income. This has become more of a reality for many families due to the economy. 
 

Benefits of Working

A young person working has many benefits.

1. They become more financially responsible when it comes to spending "their" money. They can purchase things that are beyond the family budget, such as a car or a stereo system.
2. They can save for long-term expenses, such as college or a down payment on a car.
3. They learn how to set priorities, and manage both their money and time more effectively.

 

Number of Hours

A longitudinal study showed that the number of hours 10th grade and 12th grade high school students work is correlated to their grade point averages.  "The determining factors seem to be the number of hours worked during a week. Students who work less than 13 hours a week in the 10th grade and less than 11 hours a week in the 12th grade perform better than students who do not work but once students exceed the number of hours per week there is a significant drop in their GPA's compared to non-working students."¹

Work Experience
Teens also gain valuable work experience especially if they can find work related to their interests. Many colleges ask applicants to list work experience or volunteering related to the school they're applying to. For example, if your child wants to become a veterinarian, help them locate work with animals. If they're headed towards a medical career, find work in a doctor's office or hospital.  

Hidden Costs
There's a hidden cost of your son or daughter not liking their future career upon graduation. It is cost effective to insure your kids like the field they are studying.  I can't tell you how many teachers I know who earned a teaching credential, only to find out within five years of employment, they don't really like kids. What if they found that out in advance by working in your city's recreation department or in a children's Sunday School class? Getting a job after a college degree and finding out they don't like this work is extremely expensive not only financially, but in time and energy as well.

            
After Graduation
A final benefit of teens working is that they gain work experiences that will assist them upon college graduation. Since there's so much competition for jobs amongst college graduates, related work experience and volunteering adds to their potential employability. Yes, there are a few disadvantages of teens working, but what they gain towards becoming a responsible adult far outweighs the cons.

Sources:
1. Quirk, Kimberly J., Timothy Z. Keith, and Jeffery T. Quirk. "Employment During High School and Student Achievement: Longitudinal Analysis of National Data." Journal of Educational Research, 95 (2001).

2. Image from: Stock.XCHNG www.sxc.hu/  online-jobs-concept 1417325-m. Accessed 4/18/2014.

Teens & Money Part 2: Vacations, Checking Accounts, and Credit Cards

Dr. Marian C. Fritzemeier, Ed.D. © 2013

Author, Speaker, Educator

Your adolescents are growing so fast you can hardly keep up. Have you noticed how much more money you're spending on them? Every time you turn around, they need money for something...new clothes, a school club activity, basketball shoes, a movie with friends, and the list goes on and on. Add to these increasing costs, in a few short years your teenager will become an adult and live independently. What money management skills will they need?

Planning the Family's Vacation. One way to begin giving your adolescents real life experience is to ask them to plan your next family vacation based on the family's budget. You will need to walk alongside and help them create various categories, such as: gas and mileage, plane tickets, camping site or hotel costs per night, food for 3 meals a day and snacks, costs for entertainment, and souvenirs. This is an excellent strategy for teaching money management and how much things really cost. We found that our daughters really enjoyed planning our family vacations.

Savings and Checking Accounts. Hopefully, you opened a joint savings account in your children's names when they were in preschool or elementary school. If not, make sure your teen creates a savings account now. When your teenagers reach age sixteen, help them obtain a checking account. Do this earlier if they already are earning income from assorted jobs.

Special Offers. Many banks offer special accounts for students. It is important for young people to understand simple banking procedures. Even with ATMs, it is ideal if your son or daughter knows how to write checks and balance a checkbook before they venture into the world on their own. The saying, "How can I be out of money, I still have checks," is a reality for many.

Credit Cards for Teens? At the beginning of your son or daughter's senior year in high school, consider applying for a credit card in their name with you as a co-signer. You can create a very low maximum amount on the card. Our daughters' credit card limit was $250.00. We chose that amount because it would cover many emergency situations. It is way better to teach your young person about credit cards while still under your roof.

Colleges & Credit Cards. Unfortunately, banks appear in mass on college campuses every fall practically handing out credit cards to 18-year-olds. When these students max out their credit cards and don't make payments, the banks go after their parents. Legally, their parents aren't responsible, but many will pay for their child's "mistakes." It has become such a problem nationwide, that many colleges are not allowing banks to access their students on campus.

Now or Later? When would you like your teenager to learn about budgeting, savings, checking accounts, and credit cards? When the stakes are low and the kids are close to home or after they leave your nest with the possibility of costly lessons? 

1. Image from: Stock.XCHNG www.sxc.hu/.sale-1430736-s. Accessed 4/17/2014.

Save, Share, Spend & Other Money Matters

Dr. Marian C. Fritzemeier, Ed.D. © 2013

Author, Speaker, Educator

"Can I get a candy bar?"

"Can I have some money to buy a hot dog at the baseball snack shack?"

 "Can you buy me .....?"

Things Cost Money. Do you recognize these pleas for spending your money? In thinking about what money skills young people will need to live independently, the school age years are ideal for teaching about money management. At an early age, children learn that things they want cost money. They know what dollar bills in a birthday card are for.

In elementary school, usually during second grade, children learn the different types of money and how to make change. Some children spend their money immediately, while others save it for something they really want.

Share, Save, Spend. To encourage money management, saving, and giving, we gave each child three baby food jars marked with the words Share, Save, and Spend. Our daughters received a small allowance every Friday that they could spend on whatever they wanted after they put a dime for each dollar in the save jar, and a dime for each dollar in the share jar.

Ways to Share. As church attendees we wanted our daughters to learn about sharing with others. Sometimes they gave their "Share" money during a Sunday school class or to a special project, like the Angel Tree project for Christmas gifts for children with incarcerated parents.

Vacation Money. Another way we taught our girls about money was on family vacations. We provided meals for them, but we gave them a specific amount of money in an envelope for each day. The money was to cover the cost of snacks and souvenirs. This truly saved us money instead of paying for a snack, then another snack, then a souvenir, then another souvenir, etc. Sometimes they saved up several days to buy something they really wanted. We also discovered that there were happier to eat snacks we'd brought along instead of using "their money" to buy snacks.

Modeling Money Choices. Most importantly, money management needs to be modeled by you. If you want your children to save and share with others, they need to see you doing likewise. If you want them spending money responsibly on vacation, let them watch you doing the same. With money matters, much is "caught." Let your children catch you being a wise steward of the finances entrusted to you.

Resources:

www.sharesavespend.com
www.threejars.com
Image from: Stock.XCHNG www.sxc.hu/  green-piggy-bank-isolated-546207-s. Accessed 4/18/2014.

 

We Don't Have Any Money! Money Matters for Preschoolers

Dr. Marian C. Fritzemeier, Ed.D. © 2013

Author, Speaker, Educator

"Mommy, I want candy."

"We don't have money for that," I state.

I continue adding items from my shopping list to the grocery cart.

"I want donuts. Pleassssse," my three-year-old daughter begs.

 "We don't have any money," I explain once again.  "Count three cans of corn for mommy. That's right; you found three cans from our shopping list."

After several more times of telling my daughter we don't have any money, we finally finish our grocery list and approach the checkout stand. The clerk scans all the items and summarizes, "That will be $28.35."

"My mom doesn't have any money," my daughter quickly informs her.

My face reddens with embarrassment. The kind clerk informs her, "That's okay. I don't have any money either," as she smiles at me.

No Money for That
Of course my child thinks I don't have any money to buy groceries. How many times did I say that to her? What I neglected to explain to my three-year-old is that we have money for what we NEED, but not always for extra things that we WANT.

Wants versus Needs
So began our new campaign at home. When Kristen saw something she wanted, my husband and I started explaining the difference between a need and a want.  For example, "It would be really fun to have ..... Let's put it on your want list for the future." If it was something she needed, we clarified, "Yes, you're right. You need new shoes. Your old shoes are too small."

Over Time
By the time our daughters were in early elementary school, they could accurately identify the difference between a need and a want. God always provides for our needs. And many times He blesses us with our wants.

Lessons Learned
In the grocery store that day, I learned a key component of money management. We must teach our children the difference between a need and a want. It is a basic principle of training children about money. Do you know the difference? What about your children? Do they know the difference? Today's a perfect day for teaching this concept.

1. Image from: Stock.XCHNG www.sxc.hu/. coins-1428100-s. Accessed 4/17/2014.