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Teaching Teens Financial Responsibility in an Affluent Area
Orange County, CA, is an area known for its affluence. Many parents can give their teens things they never had growing up. I often hear teens in my office talk about what kind of car they expect for their 16th birthday, or how unfair it feels not to have the newest iPhone. Some of them have part-time jobs, but very few are expected to pay for their own extras. It can be easy to overindulge teens, making teaching teens financial responsibility difficult. However, it’s not impossible.
How Entitlement Starts
It’s not hard to see how this mindset develops. As a parent, you want to give your teen a better start than you had. It’s also easy to get caught up in the local culture of status and comparison. You’ll especially notice this when your teen starts applying to colleges. Many of their peers are applying to expensive private or out-of-state schools, and if they get in, their parents figure out a way to pay for it.
The Line Between Support and Overindulgence
Here’s the tough question: how much is too much? There’s a very fine line between giving your teen a head start and unintentionally raising them to feel entitled. The real cost of entitlement shows up later—often when your child becomes an adult and doesn’t know how to work through challenges on their own. The line between support and overindulgence is key to teaching teens financial responsibility.
When It’s Okay to Say No
It’s healthy for teens to hear “no” sometimes. It teaches them to weigh whether what they want is truly worth the effort. When I was 15, I wanted private group lessons to improve at field hockey. My parents said I could do it—if I paid for it myself. Since the combined price of the 10 lessons was $500, and I earned $5 an hour babysitting, it would’ve taken me 100 hours of work to pay for them. I decided to practice with a friend at the park instead. And you know what? I improved just as much.
A Lesson Beyond the Field
That experience taught me a far more valuable lesson than better stick skills: money costs time, and both should be spent wisely. I’m sure it was hard for my parents to say no, but I’m so glad they did. And for the record, I didn’t stick with field hockey all that long anyway.
When It’s Okay to Say Yes
You don’t always have to say no. Sometimes it’s perfectly reasonable to treat your teen or support them financially. It can be a great way to recognize their effort or reward progress. The key is balance—use your judgment to decide when to say yes and when it’s better for them to earn it. If your teen already has a working phone but wants a newer model, consider having them pay for it. They might decide it’s not worth it, or they might save up and learn valuable lessons about budgeting. Teaching teens financial responsibility isn’t about never paying for anything for you teen—it’s about being thoughtful and consistent.
Teaching Teens Financial Responsibility By Meeting Your Teen in the Middle
Another good approach is to meet your teen halfway. If they’re saving for a big purchase, encourage them to save for half while you cover the other half. For example, my daughter wanted a new surfboard. I told her I’d pay for half, but she needed to pay for the rest. This made the goal more achievable for her, while still teaching important financial responsibility. She found a surfboard she loves, and she feels proud of herself for saving for half of it. You can do the same thing with your teen.
Teaching Teens Financial Responsibility Starts at Home
It’s easy to fall into the trap of overindulgence, especially in a place where it seems like everyone else is doing it. But letting your teen earn their own extras teaches them confidence, pride, and self-sufficiency. It’s fine to cover some stuff, like sports equipment. But if your teen wants an upgraded version of something they already own, that’s a great opportunity to let them to pay for it themselves. Teaching teens financial responsibility doesn’t mean depriving them—it means giving them the skills and mindset they’ll need to thrive as adults.
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