[its.crystal.clear]

A friend of mine asks her teenage son to keep a money journal tracking each and every penny he spends. Whether it be his money or his parents money.

Is this type of technique beneficial in teaching a child money responsibility?  Although I think it is good in theory, not sure if will help in the long run.

[its.crystal.clear]

A friend of mine asks her teenage son to keep a money journal tracking each and every penny he spends. Whether it be his money or his parents money.

Is this type of technique beneficial in teaching a child money responsibility?  Although I think it is good in theory, not sure if will help in the long run.

[cl3_lil_monkeys]

I recently attended a financial class where this was suggested as one way to be aware of what you're spending, especially if you have a goal to save for a bigger purchase (for a teen that might be an iPod or even a car).  Having him keep track will help him see where he's spending needlessly and eventually he'll cut those "expenses" out because he'd rather have whatever goal he's aiming for.

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[vanessa_vp]

When teaching teens about money, you want the lessons and habits to mirror real life. Does tracking and keeping a money journal resemble what he might be doing as an adult? Only partially. I think there is a difference between tracking expenditures for budgeting purposes and logging purchases and making your teenager annoyed and paranoid. I recommend keeping a money log for a month and seeing what kinds of things your teen is spending on. Parents can use this as a great way to bond and get to know their teen’s habits. How much do they spend on clothes? Movies? Music?

Once you do this for a month, try to gauge and give allowance accordingly. This way teenagers have an idea of what they are spending on and then have some freedom to try it on their own. You can do this every six months or so to check in on the allowance number and see if spending habits have changed. I also think keeping a handwritten journal is a bit tedious (not to mention teens can fib on spending). I know the prepaid, reloadable card by American Express called PASS has a way for parents to log spending online. This is much easier and cuts down a teen’s tendency to lie or forget items on a handwritten journal.