Giving children of this age more financial responsibility will help them learn to prioritize their needs and wants. By age 13, an allowance should be enough to cover savings, fixed expenses and spending money. In the teen years, ages 13 to 18, they need experience with managing larger sums of money and making decisions about how they spend and save money. Some parents suggest that by the time teens finish high school they should earn money to pay for all personal expenses such as clothing, entertainment and snacks. Teens who will go away to college may use a credit card and a checking account to pay college expenses.
Credit is an important financial tool.
They can learn how to handle credit responsibly if they are taught the advantages and disadvantages, the kinds and the costs of credit. Refer to the mini-lesson, Students and Credit Cards, which focuses on responsible credit card use. Some companies offer junior shareholder programs or waive fees for small accounts. Younger children may need guidance on how to manage money gifts. Children over the age of 12 should be allowed to decide how to spend small money gifts.