“Mom, I saw these cool headphones the other day,” Chima told his mom excitedly.
She shot him a playful side-eye and said, “Hope you know 'Mom' doesn’t stand for 'Made of Money!'”
That line never fails to crack me up, but there’s an important lesson in there. The teenage years are a critical time for learning how to manage money, and giving teens some control over their spending is a great way to build those essential life skills.
By gradually introducing them to the idea of paying for certain things themselves, you’re preparing them for the realities of adulthood. But how do you decide what your teenager should start paying for? What expenses make sense for them to cover, and how can you set them up for success without overwhelming them?
In this post, we’ll explore practical ways to strike the right balance, helping your teen become more financially responsible—while still allowing them to enjoy their youth.
Why Should Teens Pay for Some Expenses?
One of the best ways to teach teens about money is by giving them the responsibility to cover certain expenses themselves. It might feel strange to ask your teen to pay for things like a new pair of shoes or a trip to the movies, but this hands-on experience teaches them how to budget, prioritize, and make more mindful spending choices. Let’s break down some of the benefits of introducing financial responsibility to your teen’s life:
1. Builds a Strong Sense of Responsibility
When teens are tasked with paying for their own things, they start to see money differently. Rather than thinking of it as an endless resource that flows from their parents, they begin to associate it with effort, such as doing chores, or other jobs.
For example, if your teen has to cover their entertainment, they’ll quickly realize that going out with friends every weekend may not be feasible if they want to save up for something bigger, like a new phone. This teaches them to balance short-term wants with long-term goals.
2. Teaches Budgeting and Prioritization
By asking teens to pay for some of their own things, you’re giving them the chance to practice budgeting. Maybe they get a weekly or monthly allowance, or perhaps they’re earning money through a part-time job or freelance gig. Either way, they’ll need to figure out how much they can afford to spend on everyday things like snacks, outings, or new clothes.
If your teen is always running out of money before the next allowance or payday, it’s a good opportunity to sit down with them and discuss ways to improve their budgeting skills. This kind of practical, everyday experience is one of the best ways to teach financial literacy that will stick with them throughout adulthood.
3. Prepares Them for Real-World Expenses
When teens learn to pay for some of their personal expenses, they get a preview of what it’s like to handle real-world financial responsibilities. They start to understand that money is needed for both fun and necessity. This foundation will help them transition more smoothly into adulthood, where they’ll be responsible for rent, groceries, and other essential bills.
10 Things Teens Should Pay For
As your teen begins to understand the value of money, it’s important to introduce them to specific expenses they can start paying for themselves. By covering some of their own costs, they’ll develop crucial money-management skills like budgeting, saving, and prioritizing their spending. Below are ten practical things teens can take responsibility for, giving them a sense of financial independence while teaching them important life lessons.
Non-Essential Clothing
While parents typically cover the cost of school uniforms or basic clothes, you can encourage your teen to pay for non-essential items. If they want the latest fashion or a brand-name pair of shoes, make it clear that those purchases will come out of their own pocket. This helps them differentiate between “wants” and “needs.”
Entertainment
Whether it’s going to the movies with friends, attending a concert, or subscribing to a streaming service, entertainment expenses are a great way to teach teens about budgeting. They’ll quickly learn to manage their fun money and make choices about what’s really worth spending on.
Snacks
Teens love to grab snacks while hanging out with friends or studying, but buying every craving shouldn’t fall on parents. Giving them the responsibility of buying their own snacks teaches them to plan ahead and budget for smaller, everyday expenses.
Gifts for Friends
If your teen has a part-time job or receives an allowance, they can start paying for birthday or holiday gifts for friends and family. This helps them understand the value of generosity while also working within a budget to find meaningful but affordable gifts.
Data and Airtime
If your teen is glued to their phone, it’s fair to ask them to contribute to their mobile phone plan. This could mean covering the cost of data usage or airtime. This will make them more mindful about their phone usage and teach them to manage regular expenses.
Personal Care Products
While parents usually cover basic toiletries, teens can start paying for the extras like specialty skincare products, makeup, or hair styling tools. This helps them make decisions about what’s worth spending money on and encourages them to stick to a personal budget for these items.
Hobbies and Activities
If your teen has a specific hobby—whether it’s art supplies, gaming equipment, or sports gear—let them pay for the items related to that hobby. This can motivate them to work for what they love, whether by saving their allowance or earning money through a part-time job.
Transportation
Whether it’s for bus fare or rideshare services, teens who go out alot can start contributing to their own transportation costs. This not only teaches them responsibility but also encourages them to plan their activities more thoughtfully when they know they have to pay for getting around.
Upgrades to Gadgets
If your teen wants the newest tech or an upgrade to their existing gadgets, let them save up for it. Whether it’s a new phone, gaming console, or laptop accessories, paying for these non-essential tech purchases will help them learn to budget for big-ticket items.
Things they break or lost
When teens lose or break something, like a phone, charger, or headphones, it's a great opportunity for them to learn about responsibility. You can start by discussing the cost of the item and setting a plan for them to contribute towards it, whether from their allowance, a part-time job, or even doing extra chores. This approach encourages them to take better care of their possessions in the future while giving them a sense of ownership and accountability.
Examples of Things Parents Should Pay For
While it’s important to give teens financial responsibility, there are some areas where parents should continue to take the lead. These are essential costs that teens may not be ready to manage, or expenses that would place an unfair burden on them. As parents, covering these costs helps ensure that your teen’s basic needs are met while still allowing them to learn financial responsibility in less critical areas.
Educational Costs
Healthcare and Insurance
Basic Clothing
Home and Utilities
Food and Groceries
Extracurricular Activities
How Teens Can Earn Money to Pay for Their Own Things
Encouraging teens to earn their own money gives them a sense of control over their finances while also helping them develop important skills for adulthood. When they contribute financially to their own expenses, they gain a deeper understanding of the effort required to earn and manage money. Here are some practical ways teens can start earning:
1. Part-Time Jobs
One of the most straightforward ways for teens to earn money is by taking on a part-time job. Many businesses, such as retail stores, local restaurants, or supermarkets, are open to hiring teenagers, especially after school hours or during weekends. Not only will they earn money, but they’ll also learn about work responsibilities and how to balance their job with school and other commitments.
2. Freelancing or Online Gigs
With the rise of the digital economy, teens have more opportunities than ever to earn money online. Freelancing jobs, such as graphic design, writing, or even video editing, are available for teens who have the necessary skills. Websites like Fiverr, Upwork, or Freelancer allow you to create profiles and offer their services.
Additionally, teens can take part in online gigs, like tutoring, conducting surveys, or selling products they create, such as handmade crafts or digital artwork. Encouraging your teen to explore their talents and hobbies can also help them earn money while doing something they enjoy.
3. Tutoring
If your teen excels in certain subjects at school, they can use their knowledge to help others by offering tutoring services. This can be particularly valuable in subjects like math, science, or languages, where many younger students might need extra help.
Tutoring can be done in person or online, and it allows teens to develop teaching skills while reinforcing their own understanding of the subject.
4. Household Chores
If you’re looking for ways to give your teen more financial responsibility within the home, you can offer to pay them for extra household chores or tasks beyond their regular duties. This could include cleaning the storage, deep cleaning certain areas of the house, washing the car or even organizing family events.
5. Selling Items Online
Teens can also earn money by selling items they no longer need or creating items to sell online. Platforms like Jumia or Konga can be great options. This could include selling old clothes, books, or tech gadgets.
Teaching teens how to sell online helps them understand the value of items, marketing, and customer service. It's a great way to earn extra income while decluttering their room or pursuing creative endeavors.
How Earlybean Can Help
Teaching teens to manage their money is one of the most important skills they can learn as they grow. It’s essential to start by setting clear expectations, such as what expenses they should cover themselves and what remains a parental responsibility.
However, teens won’t learn these lessons on their own. That’s where Earlybean comes in. The app provides a structured, safe environment for teens to make decisions about their money, allowing parents to monitor and guide their progress without hovering. With Earlybean, teens gain the financial knowledge and experience they need through practical tools, fun challenges, and real-world experiences.
Ultimately, teaching teens about money is a long-term investment in their future. By offering them support and the right resources, you’re giving them the gift of financial independence and confidence, ensuring they’re well-prepared for the challenges ahead.