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Teaching my middle schooler to manage money
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6 steps to help a middle or high schooler budget

Your child may not have a full-time job or a mortgage. But basic budgeting skills can help him plan spending—and set him up for long-term success handling money. Here are steps to get started.

monthly income list

The first step in building a budget is figuring out how much money comes in. For tweens and teens that means regular income, such as paychecks from jobs and allowances, as well as money given to them on birthdays or holidays. Have your child add up what he receives in a month—that’s his total monthly income.


Required expenses are necessary costs you must pay regularly—they’re the must-haves. For a middle or high schooler this could be a monthly cell phone bill; gas and insurance for drivers. Total these costs over a month to determine a baseline set of expenses.

savings equation

Once you have a total for the required expenses, have your child subtract that number from her income. This reveals whether she has enough to cover her necessities, as well as how much money is left over.

dollar sign

Once you’ve covered necessary expenditures, explain that what’s left can go into your teen or tween’s savings account. She also could use extra funds for discretionary purchases such as going to the movies or buying concert tickets—the nice-to-haves. But remind her that money is finite, and sometimes that means making tradeoffs. For example, explain that buying an expensive piece of clothing now may mean postponing a bigger purchase.


Tweens and teens may not be able to afford some big-ticket items right away, for example a bicycle or even a car. In this case you can help your child set a savings goal and then plan how to achieve it.

man standing in front of car

You can teach your child his spending should not exceed his income. If your tween or teen overspends, you can help him look for ways to cut back, or to increase income. For example, a teen may decide to carpool one month to save on gas and use the extra funds to buy a concert ticket. Teens can boost income by taking on extra jobs, perhaps mowing a neighbor’s lawn or babysitting.

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The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its partners assume no liability for any loss or damage resulting from one's reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management.

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