All parent knows, teenagers don't come cheap! In a materialistic world, it's very hard to keep up with latest trends and crazes out there! All parents want their kids to be a contributor to society later in their adult life. When they are twelve years old, kids are becoming more independent and know what they want sooner than later. Receiving big gifts when it is Christmas or birthdays are becoming a thing of the past . Kids these days seem to own everything the moment they are released. How do we teach them to be financially responsible sooner rather than later?

When kids receive their first pay packet, many believe that it's all their hard work so they can blow it and still come to you for more cash. This is an irresponsible behavior society has instilled into our children's mindset with the offer of credit cards and national debt at a record high.

Budgeting for teenagers is necessary for their financial understanding. Budgeting for teenagers is a little more complex than a 4 year old or a 10 year old as by now they have more expenses to account for. The regular rule of "one dollar per age" is pretty much out the door at the same time. A lot of teenagers' allowance would be in the range of $20-$50 per week. This takes into account travel cost, lunch money, sporting equipment, excursions, outing with friends, games and toys. For teenagers who have a driver's license, they will have to take petrol costs into account.

A simple excel spreadsheet is where we will need to start to draw up a kids budget. Income on top- allowance, part-time work will account for most of this on a weekly basis. Savings should be another category as its vital we teach our kids to save before they learn to spend. This is definitely very important for a kids budget.