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My son has a summer job

babyrena
babyrena
any tips on what he should do with his money so it doesn't just get wasted away on games and phone mins?
babyrena
babyrena
by the way he is 14.
ScarletAngel
ScarletAngel
Confiscate his paycheck!
needtoreboot
needtoreboot
His own bank account! Many small local banks and credit unions have accounts for people under 18. The account should have no maintenance fees or min balance requirements. This is a great age for him to learn to read a bank statement and manage his $$. The other upside is that the $$ will be harder to get to. Maybe he can establish a goal of something big he wants to buy and start saving toward it.

Maybe he could hold a certain amount of each check and that's his spending $$. The rest goes to savings.
babyrena
babyrena
We already made the choice that he get control of his check and how he spends it. But the main goal is school clothes and supplies. I am trying to encourage him to save it. He is digging in his heels big time. I should confiscate it. ugh! today is his first pay check.
deleted_user
deleted_user
Talk to him about making a budget.it would be a good skill to learn. Put a certain amount to "having fun".a certain amount to "school clothes" and a certain amount to "savings"..even if its a small check,it should work.
needtoreboot
needtoreboot
Babyrena, I'm not saying once it goes into the bank it can NEVER come out. I just think making it a bit harder to access makes it less likely he'll waste it away as you mention. If he has to really think about those purchases and make the trip to the bank next day for the $$, the urge may have passed by then. I know for me, if I have money in my hand, one minute it's there and the next it's gone. And most of the time, I can't really tell you what I've spent it on!

I really agree with rainflowers too about the budget. This is a great time for him to start learning how to manage money.

With all respect, I'm thinking you may have to pull rank on him on this one. He's earned the money and he's certainly entitled to spend some of it any way he pleases -- just not ALL of it.

BTW - congrats to him on his summer job!
babyrena
babyrena
thank everyone, I will sit down and talk to him about the importance of money mgt. his first payday is actually next fri. So we have time to sit down and see what he has planned and if he want to open a saving acct, and where, I am thinking a credit union is best. what you guys think?
2newadvntrs
2newadvntrs
Id tell him he gets 1/2 of his check and has to put the other 1/2 into a mutual fund or bank account until he has enough to put into a mutual fund..and show him how he can make 21 percent over the next yr or 2