Take Charge of Your Money

If you get an allowance, use it to learn how to manage your money. These steps (and your parents) can help:

Make a plan.

You’ll get some money—so plan how to:

• Spend your money—and on what
  
• Save your money—and how much to save

Ask your parents what they think of your plan. Do they have any ideas?

Remember: Not too many people can buy everything they want. You’ll have to decide which items are:

• Worth spending money on now
  
• Worth saving for and buying later
  
• Not worth spending any money on

Set up a payday.

People who work have a payday, so ask your parents for your own payday. Ask for your payday to be a day early in the week. This will help you to plan ahead for weekend expenses.

Set limits and guidelines.

Are there certain things that your parents don’t want you to buy? Find out what they are now. Also, your parents might make it a rule that you consult them before you buy anything that costs more than a certain amount, such as $20.

Have a plan for when you make mistakes.

You might overspend. If so, what should you do—and what will your parents do? Ask your parents to help you fix your mistake and learn how not to make that mistake again. (For example, did you spend some extra money because one of your friends was spending a little extra? What can you do in the future?)

Click here for some other tips to help you take charge of your money.