# How much of a paycheck should a teen save?



## 3girls1boy (Nov 20, 2001)

For college or other post high school training? Now that my DD has a job where she pays Social Security, etc. I want her to start some more serious saving. How much of her paycheck would you think should be saved?

Jeanne (mom to DD, nearly 15, DD, nearly 12, DD 9 and DS 6)


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## alegna (Jan 14, 2003)

Quote:


Originally Posted by *3girls1boy* 
For college or other post high school training? Now that my DD has a job where she pays Social Security, etc. I want her to start some more serious saving. How much of her paycheck would you think should be saved?

Jeanne (mom to DD, nearly 15, DD, nearly 12, DD 9 and DS 6)

I would think it would depend on what other expenses she has to pay out of it- bills? insurance? etc.

-Angela


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## 3girls1boy (Nov 20, 2001)

Well right now she doesn't have any bills to speak of. She's only 14 so no insurance or bills. She only works a few hours a week providing child care for a family drop in program. I'm thinking maybe 20%?


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## choli (Jun 20, 2002)

Save 1/3, spend 1/3, pay 1/3 to parents as rent.


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## DoulaClara (Jan 3, 2006)

Quote:


Originally Posted by *choli* 
Save 1/3, spend 1/3, pay 1/3 to parents as rent.

Pay 1/3 of their own paycheck to parents as rent? At age 14??







: Perhaps after 18, but not at that young age. A 14 year old has no real choice other than to live at home.

*3girls1boy*- Does your DD have any goals she is saving up for (like, a new outfit, or maybe a car in a couple of years?) Maybe sitting down with her and showing her on a piece of paper what setting aside X amount of money every week will add up to. More so if it's in a savings account. I'll bet that after seeing what a weekly sacrifice of $10 or $20 can do over even a course of six months, she would be glad to come up with a figure that is comfortable to her.

Clara


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## alegna (Jan 14, 2003)

Yeah, at only 14 I'd let her save for something short term. I'd say 1/4 depending on how much she's making and if she has things she wants/needs to spend the rest on. (is all her entertainment coming out of that? or clothes? or or or...)

-Angela


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## Starr (Mar 16, 2005)

Wow I worked from 14 on up and my parents never had any say in my money. I just can't imagine them telling I had to do such and such with it, maybe times are changing. I would recommend she save some but don't think I would enforce it.


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## choli (Jun 20, 2002)

Quote:


Originally Posted by *DoulaClara* 
Pay 1/3 of their own paycheck to parents as rent? At age 14??







: Perhaps after 18, but not at that young age. A 14 year old has no real choice other than to live at home.
Clara

It's part of learning the value of money and that things do not come for free. I actually intend to save the "rent" money in a special account for each DD, it will be a "bonus" to help finance school when the time comes. But I think it's important that my DDs understand the concept that living costs money, toothpaste and food and heat and light do not just magically appear.


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## DoulaClara (Jan 3, 2006)

*Choli*, I guess we'll have to agree to disagree. As long as my kids are so young that they have nowhere else to go, (ie an alternative like renting their own place), they will be supported by me and DH. We have made other decisions about how often they will be gifted (birthdays and Christmas) and they won't recieve allowances for doing little jobs around the house (as we feel that as a family, we all pitch in to upkeep our environment), but obviously, to each family their own (I know some families wouldn't dream of asking their child to do a chore without compensation).

Good old trial-and-error worked for me when I had my first babysitting jobs. I'd go through money like water, and be stuck without the chance to spend it on something I considered important. I think that helped me out a lot more than if I had a mandatory savings amount. My mom did sit down with me and go over how much I could save if I set aside a few dollars a week, and I did! It was so neat to save up $100 for the first time- I couldn't even touch it!

Clara


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## forthebest (Jun 19, 2006)

My dd 15 works some nights and I will not be charging her rent! She will be doing all that soon enough and she is well aware of that. Wage-slaveism and adult responsibilities will start soon enough. She does have to pay for some petrol to take her back and forth to work tho cos I have very little cash for extra petrol, she's also started getting toiletries for herself and stuff if I forget,buys her own clothes. I managed to give her cash today to go to a gig and treat herself cos it's a while since I forked out due to suffocating bills, her work had underpaid her all this week.


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## mtiger (Sep 10, 2006)

My kid's got his first job this summer, and it would never occur to me to charge him "rent". Providing him food, shelter and clothing is my job as a parent. Now, if he wants some other food or clothing than I provide, he's welcome to pay for it himself. But housing? No.

I'd told him that we will go open a checking account with his first paycheck. We already have a good idea of what he'll be bringing home. And have gone with save a third, etc routine. 1/3 he saves. 2/3 is for food, clothing & entertainment beyond what I provide.


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## forthebest (Jun 19, 2006)

Quote:


Originally Posted by *DoulaClara* 
*Choli*, I guess we'll have to agree to disagree. As long as my kids are so young that they have nowhere else to go, (ie an alternative like renting their own place), they will be supported by me and DH. We have made other decisions about how often they will be gifted (birthdays and Christmas) and they won't recieve allowances for doing little jobs around the house (as we feel that as a family, we all pitch in to upkeep our environment), but obviously, to each family their own (I know some families wouldn't dream of asking their child to do a chore without compensation).

Good old trial-and-error worked for me when I had my first babysitting jobs. I'd go through money like water, and be stuck without the chance to spend it on something I considered important. I think that helped me out a lot more than if I had a mandatory savings amount. My mom did sit down with me and go over how much I could save if I set aside a few dollars a week, and I did! It was so neat to save up $100 for the first time- I couldn't even touch it!

Clara


This compensation for chores cropped up for me when two women I know asked me about this and I said I did not do this as I agree with Clara that it should be teamwork. They were disgusted that I (a single-mom on welfare trying to get into work the now) did not always have money to pay each of my 3 dc regular pocket money, excuse me??!! I AM the pocket!!what I'm supposed to owe my dc money?? It made me feel horrible as my dc get every spare penny going just not every week on the dot, though my eldest was getting sometimes £20-30 off me at a time, say every fortnight when I got the money from my pt job. I was told how could my dc be expected to learn the value of money? I thought that if the most important way you can teach your dc the value of money is to pay them each week then something is sadly lacking imo. I totally disagree with paying for chores and don't appreciate other's parenting choices as the default.


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## Crazy Basil (May 22, 2006)

Quote:


Originally Posted by *Starr* 
Wow I worked from 14 on up and my parents never had any say in my money. I just can't imagine them telling I had to do such and such with it, maybe times are changing. I would recommend she save some but don't think I would enforce it.

I have to admit, I feel sort of similarly about this. I got my first job when I was 16. Not getting a job was not an option, but my mom had no say in what I did with my money. That said, pretty much anything I wanted, large items or "necessities" aside, was to come out of it - gas, movies, non-essential clothes (guess she didn't want to pay for my baggy raver pants  ), food when out with friends, etc. I was also putting a small part of my money into a 401K that was available through the job.

Looking back, maybe I'd be in a better place financially now if she had enforced some sort of mandatory saving. But I can guarantee I would have resented the hell out of it at the time. I second the idea of sitting down with her and showing her how things can calculate out to a lot of money over time and then letting her decide.


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## mtiger (Sep 10, 2006)

I should have added that the 1/3 my boy is to save is targeted for insurance and gas - I have a car he can drive, but he needs to contribute to the running costs. He wants to drive, so this helps him get there.


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## choli (Jun 20, 2002)

Quote:


Originally Posted by *forthebest* 
My dd 15 works some nights and I will not be charging her rent! She will be doing all that soon enough and she is well aware of that. Wage-slaveism and adult responsibilities will start soon enough. She does have to pay for some petrol to take her back and forth to work tho cos I have very little cash for extra petrol, she's also started getting toiletries for herself and stuff if I forget,buys her own clothes. I managed to give her cash today to go to a gig and treat herself cos it's a while since I forked out due to suffocating bills, her work had underpaid her all this week.

To each his own. I view the teenage years as the time to learn how to transition to adulthood. I also think it's important to establish good financial management habits early. So:

1. Pay yourself. (Savings)
2. Pay the bills (The "Rent" that will actually be going into a savings account for DD).
3. The rest is spending money.

Rather than:
1. All is spending money. And just wait till I get a credit card so I can spend money that I don't even have.

Financial security has as much to do with how you manage your money as how much you earn. I hope that in addition to learning this themselves, my DDs will also look for these skills in their life partners, so they won't find themselves in the situation of being married to someone who'd rather buy his expensive toys than pay the bills or have a savings cushion against hard times. I've lived through hard times, so I know how important it is.


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## CallMeMommy (Jun 15, 2005)

When I started working I stuck half in savings and the rest was my play money. That was my self-imposed rule, though. The only expense I had was car insurance (no car at the time, but I paid the increase on my mom's insurance for having me added). Even when I started working full-time but was still living at home I put half of my paycheck in savings (since I was still in college my mom was still getting child support from my dad, otherwise I'm sure I would have been paying rent). Now my child is only 3, but that's what I'm planning to do with him when he gets older - 1/2 in savings, the rest is his, and as long as he's going to school full-time I won't charge for room or board. I had a nice little nest egg by the time I moved out on my own.


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## forthebest (Jun 19, 2006)

Quote:


Originally Posted by *choli* 
To each his own. I view the teenage years as the time to learn how to transition to adulthood. I also think it's important to establish good financial management habits early. So:

1. Pay yourself. (Savings)
2. Pay the bills (The "Rent" that will actually be going into a savings account for DD).
3. The rest is spending money.

Rather than:
1. All is spending money. And just wait till I get a credit card so I can spend money that I don't even have.

Financial security has as much to do with how you manage your money as how much you earn. I hope that in addition to learning this themselves, my DDs will also look for these skills in their life partners, so they won't find themselves in the situation of being married to someone who'd rather buy his expensive toys than pay the bills or have a savings cushion against hard times. I've lived through hard times, so I know how important it is.

Yes I agree, they do need to learn these skills, without a doubt. I have explained the credit card issue to my dd and am encouraging her to start putting some aside. It's easy enough when they are at home and the rent, bills etc are paid for by parents. Financial security tho is not a dead cert especially in this day and age of rising costs and ridiculous housing prices, you can save all you like here but unless you are getting a very high salary the chances of affording your own home( security) are low. I worked from age 10 and am most frugal with everything, look after the pennies and the pounds will look after themselves, or so they say. It's so easy to take out loans but paying them back?... well!!


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## ShaggyDaddy (Jul 5, 2006)

I worked from 14 on and my parents had no say in my money. I would probably have just quit my job if they had made some rediculious requirements for me on how I could spend my money. As it happened I just spent it all on cars and food... kinda like I do now







no regrets. As for paying for college... I knew what my options were at 14: Save for it, loans, scholorship, or let my parents pay for it (an option that I consered as a non-option because they NEVER let either of my sisters live down the fact that they paid for their college). I worked my butt off in school so that I could earn a scholorship because, to me, it was easier than saving the money (if I would have saved 100% of my income I would have had more than enough, but I never would have stayed working if I never got to spend money). FYI I did the same thing in real life... when we were very low income I didn't bother to save money, because I could just work harder at my job and earn wage increases and new positions, now that I make good money, saving is easy and useful... I save more in a year now than I made at in 2 years as a teenager or young adult... it would have been a waste in my opinion to scrimp and save 50 bucks a month, when now I can easily put away much more. It has worked out well for me and my family, and I formulated the plan I still use to this day at the age of 14.


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## jrose_lee (Oct 2, 2005)

My mom always told me....

1/3 in savings
1/3 to pay back any debt (for me, paying them back for my car)
1/3 spending money


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## SusanElizabeth (Jun 2, 2006)

I think that having a paid job at 14 is very commendable in of itself. My DDs never had a job at that age, except for occasional babysitting and pet-sitting. I would suggest to her that she save some money, but I personally would not set up strict requirements like "you must save x amount."


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## Naless (Apr 9, 2007)

My parents taught my siblings and I

10% of the total check to church or charity

1/3 long term savings (college, car, or large ticket items)

1/3 short term saving ( video games, trips with friends, ect.)

1/3 daily expenses and spending money (bus or car fare, uniforms, movies, hanging out with friends)

Works to this day and its what we all teach our children now


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## Storm Bride (Mar 2, 2005)

If ds1 gets a job this summer, he can spend it how he wants. I'll encourage him to save a good chunk. My dad always told us to put away 10%. I'm the only one who did, and I locked it into an account with someone else's signature, so I couldn't touch it. I've financially screwed myself up beyond belief in life (amazing what one mistake like a bad marriage can do), but I've still got my little savings tucked away.

We'll see how it goes with ds1. He gets a weekly allowance - not tied to chores, which are simply expected. Currently, it goes straight into his bank account, and he rarely accesses it. He's saving for a Wii right now. I"m not crazy about the video games, but the consoles do give him a "big ticket" item so that he can learn about saving.


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## 3girls1boy (Nov 20, 2001)

Quote:


Originally Posted by *alegna* 
Yeah, at only 14 I'd let her save for something short term. I'd say 1/4 depending on how much she's making and if she has things she wants/needs to spend the rest on. (is all her entertainment coming out of that? or clothes? or or or...)

-Angela

She's already very good at saving in the short term. She's saved up babysitting money to buy an Ipod and a digital camera. I want my kids to have something saved up of their own for college, though. DH and I have saved some and her grandparents have actually (to my surprise) already put away quite a bit for my kids' higher education.

I'm also thinking about having her look up college expenses, so she has some kind of idea. I've seen or heard about too many people in their 20s now who are really saddled with college loan debt. (DH and I were lucky to have gone to in state colleges a long time ago when it was easy to save enough for tuition just working during the summer--I think tuition was $600 a semester!!)


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## alegna (Jan 14, 2003)

Quote:


Originally Posted by *3girls1boy* 
She's already very good at saving in the short term. She's saved up babysitting money to buy an Ipod and a digital camera. I want my kids to have something saved up of their own for college, though. DH and I have saved some and her grandparents have actually (to my surprise) already put away quite a bit for my kids' higher education.

I'm also thinking about having her look up college expenses, so she has some kind of idea. I've seen or heard about too many people in their 20s now who are really saddled with college loan debt. (DH and I were lucky to have gone to in state colleges a long time ago when it was easy to save enough for tuition just working during the summer--I think tuition was $600 a semester!!)

Honestly the amount a 14 yr old can save is going to be such a tiny bit unless she works full time between now and graduation. If she's lucky it would cover books for one semester. It seems more of a punishment to me as I can't see it honestly being enough to be useful.

-Angela


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## alllyssa (Sep 1, 2004)

I had various jobs all throughout high school, starting my freshman year when I was 14. My mom never said anything to me about how I spent my money and I rarely asked her for money after I started working. I totally regret not learning how to or get into the habit of saving money. This really bit me when I started college and the credit card applications came. Let's just say that willpower was not my strong point.

So fast forward 20 years . . . my 16 year old son will be starting his first job this summer and he will be saving 1/2 his paycheck. He can spend the other 1/2 however he likes, but he needs to have money in savings for when he wants to go snowboarding next winter and wants $100 or would like to take a girl on a date or to a dance or go away with a friend's family for a weekend someplace, buy a car eventually, backpack in Europe for the summer after graduation, etc.


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## Dar (Apr 12, 2002)

Rain has her first job at 11 (acting) and she's worked pretty steadily ever since, doing various things. I've never tried to control how she spent her money, and I've always provided for the basics - food, clothing, some cash for a movie with friends, etc. She's always used her money for extras, like a cute new shirt that she wanted but didn't really need, or going for coffee with friends (which I would sometimes pay for, but if it came up spontaneously she'd usually pay). She generally had a few hundred in her bank account - right now, I think it's four hundred and change.

She wound up clearing about a five or six hundred dollars when she was 11, for her acting job (she paid for gas out of her earnings, because the theatre was almost an hour from our house, so that took nearly half of her money because she only worked a few hours at a time). She blew through it very quickly, but since then she's done a lot more saving. Last year she wanted to go on a spring break trip to New York City with her dance studio, and I agreed to pay for the basic package if she'd pay for her meals and extras. That came to around $500 (they ate out all of the time, and she also used some of it for souvenirs and show tickets and dance classes) and she earned the money. Since then (about a year ago) she hasn't worked as much, but she's been catsitting for a friend and will be doing so all summer, pretty much, so that will be a few hundred.

I've given her the freedom do make her own decisions in most things - schooling, hair color, dress, food - and so for us, money is just another aspect of that philosophy. If she makes mistakes, they're not a big deal, because she's 14...

Dar


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## AbbieB (Mar 21, 2006)

Yikes, making a child pay rent? Is that only as long as money in coming in or does the rent bill go away when the job does? It's not really teaching the reality of adult bills if it disappears. So does the child HAVE to work from now on?

Sorry, I'm not picking on the PP, I'm just wondering. As a young teen my Dad made it clear that at the age of 18 I would need to get out or cough up rent. At that young age, 14ish, it definitely added to my feeling that I was not loved. (I did move out at 17 for collage, all traces of my presence were removed. I slept on a fold out couch when I was home from school for holidays and summers.)

I can the point about teaching kids that things cost money, but rent is not something I would require. How about starting with buying a special piece of clothing, sports equipment, electronics? I used my first job money to by a bike, a stereo, and for clothes my mom thought were to expensive.

Once I started having a regular income (rather than sporadic babysitting money) I was expected to help pay for gas if I used the car and cover my own entertainment (movies and such).


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## forthebest (Jun 19, 2006)

AbbieB, I'm sorry all traces of your presence were removed when you went to college, that sucks,so mean and uncaring, all traces of my dc mean everything to me and always will,


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## Yooper (Jun 6, 2003)

I got my first job, aside from babysitting, at age 14. My parents had to pick me up from that job as well as the one that followed. Once I got a license, I still had to borrow my parents car to get to and from. The "rule" was that when I had a job, I no longer got allowenace. I also had to put 1/2 if every check into savings. If I did those things, I had use of the car. If I did not, I needed to pay my own insurance, gas, and portion of the car payment/maintnence. I could use my savings for any large purchase. A car? College? First apartment? Etc..... I ended up being very happy to have it there for college. I am the sort of person that would have saved at least 1/2 anyway. If I did not have the "rule" I probably would have saved more. So I am reluctant to impose the same sort of rule. I think that instilling a sense of fiscal resposibility is important but I am pretty sure it cannot be imposed. My sister, under the exact same rules, still cannot manage her money.


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## Margot Adler (Jun 2, 2007)

i think encouraging your kids to save money is a great thing, but if you try to force them it may backfire... it did with me. as soon as i was able to spend my saved money i blew it on useless stuff, just because i could. money has always been a struggle with me in terms of my relationship with my parents as i have always felt like they have used it to manipulate rather than instruct. just something to think about.


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## Amber Lion (Sep 22, 2006)

However much s/he feels they want to save. It's *THEIR* job; *THEIR* money! I can't imagine parents dictating what someone does with their own $.







: I think it's needed to talk to your children about finances and saving, but dictating what they do with their money is going too far. You didn't work for it, after all. It's only fair they get to do what they want with it.

I got my first job at 15, but I had gotten allowance before that. By the time I was in Jr. High I had to spend my own $ on going out, clothes that weren't "needed", electronics... anything that wasn't required for school or survival. That didn't change when I got my job, I just had more money to spend on that stuff. I had to pay gas money and needed a lump sum in savings to cover the insurance deductible to use the car (and if I couldn't prove I had it, I didn't get to drive the car), but NEVER had to pay rent or give $ for food (cause that was survival).

I learned the hard way how and why to save money when I was broke and couldn't do/buy what I wanted. I learned pretty quick, Dh and I still put at least 10% of EVERY paycheck/income we get into savings. My parents did talk to me about credit cards and how it's not real money. I watched friends wrack up cc debt, but never did myself. To this day I have outstanding credit. I would have seriously resented my parents if they tried to force me to do anything with the money *I* worked my butt off in a crappy high school job for.


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## talk de jour (Apr 21, 2005)

I got my first job at 16.

I paid for my school tuition all on my own (I was in college at 16) and gas for my car. The rest was mine to do with as I pleased.


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## Jessy1019 (Aug 6, 2006)

I started babysitting at 12, very regularly, and then working retail part-time at 16 and full-time at 17. I would have laughed if my mom had told me what I had to do with my money. I wasn't telling her what to do with the money SHE earned!

I paid for my own gas, entertainment, food when I wasn't at home, and some of my own clothes. I always had money for the things I needed and wanted, and I've always been responsible with my money.

I plan on doing the same with my kids (though they may need to pay car insurance depending on our financial situation when they're old enough to drive). I think it's important that they have a job during high school and would rather not discourage working (which I feel would happen if I decided to dictate what they do with their earnings).


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## mommy68 (Mar 13, 2006)

I'd say however much they want to save. I've been raising my oldest two since very young to save money and they are very good at it. So I hope they are able to decide for themselves when the time comes to get a real job. I can't force them to do anything at all with the money they made on their own but I can hope they will take my advice and try to save some. But if they don't then thats a lesson they will have to learn on their own.


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## enkmom (Aug 30, 2004)

My kids have been working for a few years, and I do not choose to interfere with how they save/spend. They are involved in the family finances, so they know how much (or little) discretionary income we have, and how we have to make wise decisions about our money. They are encouraged to save, and they do. I have given them the tools to be smart about money, and now I need to give them the freedom to use that information without my interference.


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## PikkuMyy (Mar 26, 2004)

Paying rent at 14. Oy!

I started to work at age 13, and my allowance stopped then. Like many PP, I paid for entertainment, travel, extra clothing, food outside the house, etc. with my money, and I also saved up without being told to for things I wanted or needed. My parents did not tell me what to do with it.

Once I moved out at 19, I've never had trouble paying my bills and rent, even though I wasn't forced to do so as a child.


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## debbieh (Apr 22, 2007)

My DD who is 16 years old has a job and all I told her when she started working was that I would like her to save something. I didn't give her an amount. I have not, nor would I ever charge her rent. (Some of her friend's parents charge their kids rent, and maybe that's right for them and their situation, but not for us.) But she pays for her own make up, hair stuff, movies and that kind of thing. As well as she pays for the expenses for her puppy. I think like some here....that she is the one working for the money, so it should be her choice to decide how much to save. But also, that she should be encouraged to save SOMETHING.


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## lorijds (Jun 6, 2002)

I think, because of my own experience, I *will* make my kids save some of their money. Only because my parents never made me do so, and to this day I have NO IDEA about finances. I really suck at it.

I didn't know how to open an account or even deal with a bank. Ordering checks? I had no idea how to do any of this.

For this reason, once the dds get a somewhat regular gig, I think we will do the 1/3 in a savings account for something big--post high school plans for example; 1/3 in a joint checking account with us, and 1/3 whatever the heck they want to do with it. I anticipate that as they get older, our involvement in this scheme would be less, only mandating that they save the 1/3, and eventually, I assume by 16 or so, taking ourselves off their checking account.

We have also decided that, since we have saved very little for their college/post high school education/plans, but since our financial situation is ever-improving, we will make a deal that, if they decides to make the effort to save 1/3 of their earnings, we will match that.

I dont'' think we will force this idea of saving upon them, but we will heavily encourage it, and sweeten the deal with the matching idea. Of course, ultimately we will present our idea and ask them if that will work for them. They are pretty reasonable kids. I'm sure if they don't like it, they will probably just end up coming up with something better.


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## Earthy Mama (Jun 4, 2004)

I don't have working children, but when I was a teen, I got a job at 16. My responsibility from then on was gas, taxes and insurance for my car. My parents never told me what to do with my $$. I still contributed to the family by helping out with household duties. But, I spent my $ as I saw fit and if I wanted to save it, I did. I personally, don't think that forcing someone to do something is teaching responsibility. Allowing them to make the choice is. But, to each his own.


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