Time to play Grown-Up!

Parents – if you’re like me, and you’re on the brink of sending your teenagers to college, then teach them now how to live within their means! Too many young adults leave the home and expect to maintain the same standard of living that their parents provided for them, but what does that result in? Student loans (used for living expenses) and credit card debt! Teach them now - money runs out, so use it wisely!

How do we do this at our house? I’ve determined how much I realistically spend on their necessities each month, and I’m handing it over to them – with a budget in place, of course. How much do they need (not want) for their toiletries, gas, school/church activities, and necessary clothing? I transfer that amount to their checking accounts as their “income”, and then they enter those expense amounts in their online budgeting app (along with any income that they earn from a job and any additional expenses or savings.) Every month I check their budgets and keep tabs on their online banking, so I can see how the money is being spent.

And, here’s the important part. When the money’s gone – it’s GONE. Don’t come to their rescue, or they’ll never feel the pain of running out of money, and they’ll never make changes. (Of course, I’m not talking about extreme emergencies – please provide for your children if they really need it.) But, in the regular day-to-day, they need to feel what it’s like to want or even need something, but have to wait because they didn’t plan out their money very well for the whole month.

These are real-life issues that they need to learn. Help them struggle through it at home – before they get out on their own. Prepare them well.