Building The Money Muscle

Dave tells a listener how their teenage son should divy up his first paycheck.

QUESTION: Listener’s 16-year-old son just got his first paycheck and he wants to know how much to spend, save and give. Dave gives him the numbers, and the lessons that go behind them.

ANSWER: We like teens to tithe, or give 10% of their income to their local church. We want to teach them the spiritual and financial exercise of being a giver. The remaining 90% we just split in half. We might go a little heavier on the savings, depending on if there is a goal or not. Spend 45%, save 45% and give 10%. That’s a good exercise. What we’re trying to do is build the muscles in that teen’s character. We want to turn them into givers, savers and wise, careful spenders. If they become all 3 of those things, they won’t be broke as an adult.