The average cost of prom is inching closer to $1,000! With parents footing most of the bill, prom night is the perfect opportunity to teach teens money lessons. Financial advisor Nick Foulks stops by Milwaukee’s FOX-6 to share tips for Mom and Dad to prepare their teen for a lifetime of responsible financial decisions.
- Set Priorities – Start by determining who is footing the bill. Whatever you are willing to spend, let your child know and make it clear that it’s a firm amount.
- Make a Money Map – Help your teen understand and set a budget by making a money map. Take a week or even a month and have your teen write down each thing they bought and how much it cost. Compare what they spent to what they are earning.
- Teach Saving – It is never too early to teach your kids good financial habits like saving. You can use an expensive event like prom as an example of how to save for other major life events, like retirement.
- Compare Prices – Prom is a great opportunity to teach your teen to shop around in order to save money. If your teenager falls in love with a certain dress, tux or limo, suggest they check the price of that item or service in multiple places.