Grounded? Consider Withholding Their Allowance

Earlier this week I was discussing money management with the mom of a teenage son. She shared a creative and successful idea that she uses to show her son the responsibilities of monthly payments. He is responsible for his monthly cell phone bill and uses his allowance money to pay for it.

Having kids be responsible for some of their own bills is a great teaching tool, but, this family doesn't stop there! They drive home the lesson with an additional twist. When their son is grounded, he doesn't receive an allowance. However, he is still responsible for paying the monthly cell phone bill. It's a terrific concept to teach your children! They'll have to learn to keep some money on hand for emergencies or find an alternative way to pay their bill, reinforcing the concept of a monthly commitment.

If you have a money management tip that you would like to share, feel free to email me! I'll continue to highlight ideas and success stories from real families with kids of all ages.