Top 10: What You Should Let Your Kids Buy for Themselves

As a parent, it can be hard to navigate what you should buy for your kids. Your teenager may be asking for money for shopping, trips to Chipotle, and the latest iPhone. It’s completely appropriate and even helpful to your children’s financial literacy to let them buy certain things for themselves. Here are the top ten items you may want to let your kids purchase on their own:

1. Electronics. When the new iPhone, gaming console, game, streaming service, or computer comes out, your kids shouldn’t automatically expect to receive one. Electronics are a big investment! You can set up a plan with your kid where you pay for half and they pay for half–whatever you feel is fair–so they learn to save up for a big purchase like this.
2. Special Treats. Whether it’s a Starbucks frappuccino or fancy froyo, mom and dad shouldn’t have to foot the bill every time. Having kids pay for their own treats is a good way to teach them that small purchases can add up.
3. Souvenirs. Before heading out on a family vacation, remind your kids that they may like to purchase souvenirs. Have them budget a set amount with which you’re comfortable to buy their own souvenirs. They’ll be sure to have an extra appreciation for whatever they choose to buy.
4. Experiences. Movie tickets, concerts and other events can add up. Before your kids hit you up for a ticket, encourage them to pay their own way for entertainment like this.
5. Gifts. By the time your kid is a teenager, they’re old enough to cover birthday gifts for their friends. This can help push them to come up with unique, creative gift ideas that are within their budget.
6. School Supplies. Regardless of whether your kid is starting their junior year of high school or their junior year of college, it’s a good idea to encourage them to spend some of their own money on school supplies. You can cover a baseline level of expenses, but if they want a top-of-the-line laptop, consider having them cover the difference.
7. Textbooks. For college students, let them cover the cost of their own textbooks. This will encourage them to try money-saving techniques like visiting the used bookstore or browsing a few online retailers rather than just buying at the college bookstore, where they’re typically much more expensive.
8. Donations. Teach your kids about donating money to causes they care about. Set a good example by donating to charities part of your regular financial habits, and encourage them to do the same.
9. A Car. This will vary depending on your family’s financial situation. You may not want to gift your kid a car; instead, you could help them pick out a used car and agree to pay for half. For some parents, the convenience of having their oldest child be able to give rides to their younger siblings’ soccer practices can outweigh the cost of buying them a car. Either way, you can ask your teeanger to cover their own gas, maintenance on the car, and any tickets they may get as a new driver.
10. Clothing. Eventually almost all teenagers’ tastes veer towards clothing you might deem unnecessary or too expensive. Discuss what you’ll cover each season, whether it be a total dollar amount or a certain number of wardrobe items. For instance, for the winter maybe you’ll cover their shoes, coats and a certain number of new tops and bottoms. Anything beyond that is on their dime. This will not only give your teen pride of ownership (i.e., they’re less likely to toss those $100 jeans on the floor if they paid for them) and will help them make decisions about what pieces are truly necessary.

Start Them Off with an Account

If your child gets an allowance, is already making money from a first job or just gets some regular “walking around” money from Grandma, it’s a good idea to sign them up for a checking account so they can access that money and learn about financial budgeting.

Sign up for an online checking account – a new way to bank!