All teens and young adults should be able to manage their money. They should learn and practice this skill as soon as possible. However, it is difficult for them to master it if their learning styles are different. Get to know some money saving tips for teens and strategies to manage it.
It can also be very stressful. It can be stressful to have to work out the cost of something or use a cash register if you are having trouble understanding math. If you have trouble with executive function, keep track of your checks and cash. Teens who struggle with managing money may avoid shopping with friends or applying for jobs.
Your ability to manage your money can be affected by differences in thinking and learning. These are dyscalculia, executive functioning problems, and ADHD. The reasons for these differences are varied, and so are the strategies that may help.
Find out how learning differences can impact your ability to manage money. Find out how to help your teenager learn money management skills that will allow them to live independently.
How Dyscalculia can Affect Money Management
It is a learning difference that makes math-related tasks more difficult. It is possible for some children to have difficulties understanding basic concepts like more, less, or greater. These basic skills are often called number sense.
Additional challenges can be caused by working memory problems. It can be hard to remember math facts and to keep a number in your memory for use in an activity.
The money management connection: Teens with dyscalculia can have difficulty counting money, giving exact change, and understanding amounts.
Particular Difficulties: Teens might have difficulty estimating the cost of something. Teens may have difficulty understanding how to calculate sales tax or a discount. They might struggle to calculate the tip percentage in a restaurant.
Strategies that may help:
- You can open a bank account for your child, and bring them along to meet with the representative. Banks often have staff that do community promotions. This person will be able to assist your child with any questions. An account will allow your child to keep track of their income, part-time or babysitting jobs, as well as their expenses, so you can see how much money they have left.
- Encourage your child to use the calculator (many phones have it). This will allow them to calculate the cost of items or tips. If your child struggles writing numbers, this will help.
- You may need to help your child make a spreadsheet to track all of their expenses. This includes money for clothes, transportation, movies, apps, and other expenses. You can also include weekly and monthly expenses like gas money.
- Ask your teenager to track their monthly income using an app or a spreadsheet. This will encourage saving. Demonstrate to him how you subtract expenses from your total income. Great if there’s still money. Your child will need to make a decision about where to spend the money next month. Your child should be taught the importance of saving money and set aside each month a certain amount of money that he will not spend.
How ADHD and executive functioning issues can affect money management
ADHD is a disorder that can affect concentration, self-control and other executive skills. Executive functioning problems can cause limitations in a variety of mental abilities, including working memory and flexibility.
The Money Management Connection: Problems with executive functioning can mean that you don’t have the skills necessary to manage money (and other tasks). These skills include time management, attention, organization and attention. ADHD children can also be impulsive and care little about the consequences.
Particular difficulties: Teens with these problems may lose their parking receipts, checks or keys in their room or backpack. Or forget that they even had them. To avoid late fees, they might not pay their bills on time, lose coupons, or leave a coupon at the house and overpay in a store. They might go shopping with the money they have to pay bills, or make poor financial decisions about where to spend it.
Strategies that may help:
- Your teen should have a system in place to track his weekly expenses. This could include money spent on entertainment, gas, and food. This will allow you to see exactly how much you spend. Post reminders to your phone or wall for regular expenses.
- Assist a young adult in setting up a system to organize money-related documents. This can be done by using color-coded files. Your child might keep, for example, pay stubs and receipts in a green folder. Tax forms, on the other hand, could be kept in a blue folder.
- Your child can help you determine his monthly expenses by placing money in the appropriate envelopes. You can help him identify which envelopes should have money, such as transport to school. If he needs money for another item, help him identify which envelope he can borrow money from.
- Apps are available that help teens and young adults manage their money and save. Some examples are: Spendee, Wally , , , and Mint.
- Your child should choose the item he wants and decide how much money he should be saving each month. Set a savings goal, and open a bank account to help you reach that goal.
Teens may have problems managing their money for many reasons. However, it doesn’t necessarily have to be a permanent problem. Your child will feel more confident and successful when managing money by learning strategies and practicing.
You can also help your teen/young adult prepare for independence. Ask your child interview questions. Learn the factors that predict success in children with attention and learning disabilities. Learn how the IEP helped a teenager start college with confidence
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