When you became a parent, no instructions were given to you, so struggling is normal. You are allowed to have questions. Now that your kids have grown close to adulthood, budgeting becomes a new subject to add to the table. Your kids may have already asked you for money. If they have not yet, be prepared.
You probably have questions about how much allowance to give to your teen, whether they should have their own bank account, and how to teach kids to use their money wisely, not to mention encouraging them to earn their own money to achieve financial independence, so today we hear the teens’ side of the story as we dig into this complicated issue.
You may ask yourself what your teen uses his / her money for.
“I buy things that I like, I don’t really use money on food unless I’m eating out,”Dino Liu, a student at JPED Academy
“Mostly buying food, the rest I am saving for things like college or travels in the future,”Jasper Roscher, a student at German Embassy School of Beijing
“I have my own card with restrictions. I get a lot of money, but I must pay for things like classes, trips, plane tickets, hospitals visit and things like that,”Cindy Avom, a student at Pakistani Embassy College Beijing
“I use money to buy food or snacks, on taxis, when I go out with friends and other little personal things,” Darina Romanchyna, a student at French International School of Beijing
“I use money for buying food and clothes,”Kannika Mehrotra, a student at International School of Beijing.
What do teens spend their money on?
In most cases, money is used for food, beverages, clothes, or transportation such as bus, cars, or bikes. But sometimes they spend money on video games, makeup, activities like bowling, movies, or any interests that are important to your teenager. If they are enthusiastic about sports, photography, fashion, etc, they may use their money to grow their passion or create projects. It could also be used for extracurricular activities such as paying for trips and plane tickets. It’s even possible for teens to spend their money on dentist and hospital appointments, but that is less frequent.
Money can be used for several reasons, and your education methods will define these reasons. Whether your teenager should pay for his own food, travel, and clothes or not, is your choice as the parent and should be clarified beforehand.
Allowances
Allowance, also called pocket money, is a quite common method used for teen budgeting. According to iReaserch, 57.8% of minors in China receive pocket money regularly.
It helps kids realize the value of money, teaching them the difference between necessities and wants. Learning about money management and savings creates independence and prepares them for adult lives. It also offers them a way to start saving for more expensive belongings or trips. This idea of possessing their own money gives teenagers a feeling of freedom while becoming more mature.
How much is enough?
The amount given will really depend on the financial situation, the education and point of view on the question, what the allowances cover and the children’s age. The amount will change as they age. According to iResearch, in general, each minor in China receives about 370 yuan every month. However, it should not define or pressure parents because the amount is very subjective.
“My monthly allowance is RMB 400,”Dino Liu
“My monthly allowance is RMB 300,”Jasper Roscher
“Probably below RMB 100,”Sissi Ma, a student at Keystone Academ
Should they earn it?
Should the kids earn their own money? On one hand, some parents believe that to receive their allowance, teens must participate in household chores, which introduces the idea of “earning.” On the other hand, some parents prefer teaching the difference and install chores as habits and not work. Getting paid for offering help could have a long-term negative effect that works against the idea that contributing to the household is necessary and not a choice.
Using parent’s bank account
Having access to the parent’s bank account gives virtually no limit to minors using money. This shows great trust between the parents and the child. It may create a solid relationship, but also tension if overspending occurs. It gives a lot of freedom and allows the child to spend without concern.
While that sounds very enjoyable from the minor’s point of view, it does not teach them the value of managing money and saving. It may be complicated to transition to a limited bank account, where they have to earn their own money.
“I use my parents bank account now, but I think pocket money is a great way to teach kids about money, which is important now,” Darina Romanchyna
“Right now, my parents give me money whenever I need it, but when I’m older I want to work for it,” Gwendolyne Depoorter, a student at Dulwich College of Beijing
Working for your own money
Working for your own money can be an addition to pocket money. It helps teens to be less of a burden to their parents and creates true financial independence. Having the same advantages of pocket money, part-time work also teaches them about the idea of “earning,” demonstrating that hard work is key. It prepares teens for adulthood. However, teenagers are still young and working can be hard and energy-consuming. It can be hard to manage exams and other school pressures. Jobs for minors can also be hard to find, especially as an expat child. But the odd job for a neighbor such as babysitting, dog-sitting, dog-walking, house-cleaning, house-sitting or making money from selling crafts if that’s your passion, can still be found.
“I basically receive pocket money, but I also do babysitting for extra money,” Jasper Roscher
Images: Pexels
This article appeared in the jingkids 2022 Teen Takeover issue
