Gather around the kitchen table with a notebook and pens to outline what a budget is and its importance. Discuss the types of expenses that will be included, such as savings, necessities, and discretionary spending. This foundational step will set the stage for a productive budgeting experience each week.

Sit down together and list all sources of income for the month, including allowances, part-time jobs, or any gifts. Discuss how each source contributes to overall financial health. This discussion will help your teenager appreciate the value of earning money and the responsibility that comes with it.

Together, create a simple spreadsheet or use a budgeting app to track weekly expenses. Encourage your teenager to input their daily spending to see where money goes. This practice instills accountability and transparency in spending habits.

At the end of each week, review the tracked expenses and compare them to your initial budget. Discuss any discrepancies and explore reasons behind overspending or saving. Adjust the budget as necessary to reflect more realistic goals.

Discuss and decide on short-term and long-term savings goals, whether it’s for a new gadget, a trip, or college funds. Write these goals down and regularly check progress together. This not only teaches the value of saving but also motivates your teenager with tangible targets.

Plan a small celebration whenever you reach a savings goal or successfully stick to the budget for a month. This could be a meal out, a movie night, or a fun outing. Celebrating achievements reinforces positive behavior and recognizes hard work.

Engage in an open conversation about what money means to each of you. Discuss values like generosity, saving, and investing. This helps align financial behaviors with personal values and fosters deeper understanding and communication.