 TITLE: How to Teach Your Child to Budget Money CONTENT: Teaching Teenagers How to Budget\n--------------------------------\nTeenagers face new money challenges: getting a first job, social pressure to spend and even high-cost school and extracurricular activities. As their independence increases, so can their responsibilities.\n*   **Introduce zero-based budgeting.** Creating a budget that accounts for every dollar of income and spending each month is helpful for anyone, but teens are at an especially good financial moment for zero-based budgeting. Income and spending are relatively simple, there's a fair amount of flexibility, and they aren't prone to budget-busting surprises like a leaky roof.\n*   **Help identify money wasters.** Your teen does not need to carry a designer handbag or have a hand-tossed pizza with prosciutto di Parma delivered to band practice four times a week. You can explain to them how frivolous spending can hurt their ability to save and to spend on needed items.\n*   **Reinforce savings.** Establishing the habit of setting aside a portion of every deposit for savings is priceless. Just 10%—every single time—will pay dividends for life.\n*   **Encourage them to use digital tools.** Teens already have an uncanny ability to master payment apps like Venmo and Cash App. Help get them started with mobile banking (and a checking account), show them how to sign up for account alerts and connect them with money management apps like Mint or Plaid.\n*   **Get their help with college budgeting.** That's not just budgeting their personal expenses during college, but also budgeting to pay for college. Cost can be a huge factor in determining where your kids go to school—and how much debt they might have when they graduate. Get them involved early so they can factor money into their college decision-making. END