Pre-College Life Lessons in Financial Responsibility

This post was created in partnership with American Express.

Parenting is challenging, and while I’d like to say it gets easier with time, I’d be lying. It’s not as much physical work as when they’re little ones attached to our hips, needing their diapers changed, or to be rocked to sleep, but I can confidently say it’s more emotional work. Friends, drama, figuring out curfews, encouraging them in their studies, driver’s ed, discussions (ad nauseum) about technology, and figuring out summer jobs so they’re not asking for money whenever they hang out with their friends downtown. And that’s just some of it!

It’s nice when a company simplifies at least a small portion of the parenting load. American Express has done just that in the form of adding your teen to your account as an Additional Card Member. It’s genius, really. This Additional Card is an extension of a parent’s personal account and is managed under the umbrella of your own account.

Allowing them some financial independence without jumping headfirst into the world of credit is a smart decision. Plus, it comes with some rewards: help them budget by setting allowances, begin to build their credit in a more controlled environment if they’re over 18 (with fewer risks), and I can begin accruing points for their purchases. For that young person in your life requesting a credit card, this might be just the answer.

We’ve always encouraged (at times…it could’ve been classified as insisted!) our teenagers to hold jobs. Mind you, it’s especially easy where we live as there’s a bustling downtown scene with shops and restaurants, and everything is easily accessible by bike or car. Ripping off the bandage initially when they first had to seek out jobs was always the hardest hump to get over. Once they started earning their own money, we witnessed a change in their very demeanor (more than once). Some financial independence from Mom and Dad put a smile on their faces.

Now, for a Q&A with William about what making money and keeping track of finances has looked like so far in his life. He’s 18, and started college as a freshman this fall. In college, he gets free tuition (the biggest perk of having a Dad who’s a professor), but aside from that he will be paying for the rest. It’s far less than it would be without the free tuition, but it still adds up. So, while he’s not terribly far into this journey, he has held some form of a job since freshman year and has a specific monetary goal he’d like to keep going into each of his four years. Since there’s not much on the web about budgeting and making financial decisions alongside your teenagers, I thought we could hear about it straight from the source!

When did you begin working? What jobs have you had?
I began freshman year… hence why you said it in the intro. (Bridget here: He doesn’t lack sass.) But I have worked in restaurants and done yard work for neighbors and such.

Do most of your friends have jobs? When do you think is a good age to begin holding a job?
Yes, most of them work. I would say probably 16 for most jobs just because before that you probably aren’t physically big enough to do some things or aren’t able to get to those jobs without your parents getting you there and back. At least that’s my experience from the restaurant and odd jobs that I have done.

Do most of your friends have credit cards? Why or why not?
No, I don’t think any of them have a credit card as of right now, and a lot of them are under the impression that it’s a bad idea to have one because it will mess up your credit score. That’s why I think the Additional Card Membership you and Dad set me up with is so great. While there will always be risks to having a credit card, I feel more comfortable learning how to spend properly knowing my parents have my back.

Have you liked the financial independence having a job has given you?
Yes. I like to be able to buy things on my own, and sometimes I like to buy things that my parents won’t buy me. (Bridget here: Like what, William? Six pairs of the same shoes, perhaps? Do tell.) It’s also great being an Additional Card Member so I can manage my own budget independently and understand when I’ve saved enough to splurge a bit.

What’s the best part about holding a job?
Getting the paycheck and being able to put it on your resume. Plus I like to work hard and get compliments for my work from my bosses.

What monthly expenses do you have?
I pay for most of my phone, gas, and a portion of my car insurance (specifically the increase from my accident). (Bridget: Steve and I are firm believers in teenagers who require fancy phones needing to foot (most of) the bill.)

What’s the most expensive financial lesson you’ve experienced so far?
Definitely crashing Dad’s car (Bridget: We were in Italy when it happened! Midnight our time, we got that call. Oof. Thankfully, he was not hurt at all. The car on the other hand…). That was a huge hit to the bank account. From the deductible to the increase in my insurance it was quite a life lesson. The car wasn’t even worth that much! (Bridget: We pay for their car insurance, but anything over as a result of an accident or tickets is on them.)

Having gone through it with our own kids, adding your teen to your American Express account as an Additional Card Member is a great middle ground for parents who want to bridge the gap between giving their kids independent credit card and only giving them a debit card that allows them access to their own savings. Setting allowances with this Card (click here to learn how), helping them budget within a safe environment, going through their monthly statement with them to analyze spending habits, and their ability to accrue points with low risk are just a few things that make adding your teen as an Additional Card Member on your American Express account the perfect introduction into the world of credit cards. Learn more about how to add your teen to your account as an Additional Card Member here.

Thanks for reading, guys!