As kids mature – or at least get older – their wants and needs increase tenfold. Teenagers eat more, want more and live virtually oblivious to what things cost and what you do each and every day to maintain their standard of living. Allow this to continue and you will send your child from the nest unprepared to make the difficult transition from child, to teen and beyond, to adulthood.

Think about ways you can help your teen understand and manage money.

Provide a limited clothing allowance
Set up a clothing allowance for your teen and let him or her spend it as they please over the next 12 months. Provide the money in one lump sum or in monthly instalments. Chances are your teen will learn some valuable lessons about budgeting and the high cost of fashion today.

Consider an entertainment fund
Have you been paying for your teen’s outings up to this point? Things like skating, trips to the driving range or movies. If so, you may want to estimate how much you spend and provide that money in one lump sum your child can spend on activities of their choice. Make it clear that the fund will be replenished only once each month.

Don’t pay for good grades
Go ahead and reward your teen for their good grades, but don’t do it with money. Kids need to experience the sense of accomplishment that comes with a job well done. Celebrate a good report card with a special dinner instead.

Set up a checking account for your child
Help your teen learn how to manage money well before they set off for college. Ask if your bank or credit union is one that provides an additional no-fee checking account for preferred customers.

Talk openly about money and credit
As kids mature, it is important they learn about credit, credit cards and debt. Don’t let teens think a credit card provides access to free money. Show them your credit card statement and make it clear that the bill must be paid each month, with interest.

Teens and their jobs
Talk as a family about part time job opportunities and how much time your child has available for a job. Discuss how much money the job will pay and what the money is to be used for. Will you continue to pay for their clothing and entertainment? What percentage of their earnings will you expect your child to save? Discuss all this before their first day of work.