Ok, you might wonder… “Why are you writing this when you do not have kids?” Saw this topic somewhere and I thought I might share some helpful information that is practical for all. Even for singles like me.

In June 2018, the Philippine’s household debt hit $29.9 billion, according to CEIC Data. Compared to the GDP and external debt, this statistic means that almost every Filipino is living in debt. It is even worse for families with teenagers. This self-discovery journey may be hectic for such teenagers, and expensive for you as a parent. It gets worse if they have this sudden urge to travel, eat, or meet friends or family. But you owe it to them to let them have the best support they can. Nonetheless, do not compromise your financial security. Start by understanding some of the ways you can organize your budget as a family with teenage children.

Start With a Comprehensive Budget Plan

Creating a comprehensive budget will let you know exactly where every coin is going. To put your family finances in order, start by adding up all your monthly income and subtract recurring expenses such as utilities and credit card debts. The difference should dictate what you need to do in the next month. Always strive for a positive figure as it shows potential to save. Teenagers are also more likely to spend a bit more in activities like sports, events, and trips, so keep that in mind. Ensure you involve them as you create the family budget plan, such as encouraging them to keep track of their spending too. While at it, give your children a few responsibilities such as planning weekend spending and provide them with financial organization printables for help them plan personal finances.

Utilize Child Tax Credit Opportunities

The government requires every adult citizen to file their taxes annually. Many people regard this as a formality and another way to spend their hard earned money. But did you know there are benefits to monitoring your taxes and related news? For instance, the child tax is a mandatory deduction of P25,000 for children under 21 years living with a taxpayer. There are other qualifications for the child tax but it covers a maximum of 4 children. Compounded, this amount can save you a lot of trouble and help you save a significant amount that could go into your family budget.

This tip might not be useful for all but if you have dependents (siblings, nieces, nephews, parents) living with you, you can declare them as your dependents and also get tax deductions for them.

Control Spending on Food

41.5% of total house expenditure in a Filipino family is spent on food, according to ABS CBN. That’s almost half the total expenditure. It gets worse if you have teenage children whose puberty growth and active lifestyle necessitates an increase in food intake. A food expenses budget plan will help you realize this sooner. To control spending on food, create a ready-made shopping list with the help of your kids. Have a sit-down as a family and decide on your most favorite recipes. A meal plan for every day of the week is also a good idea. Focus on buying these food items in bulk and take advantage of discounts. This level of organization is what you need to streamline your family budget.

Keep in Mind Your Family Financial Goals

This sounds like a no-brainer but it’s actually not that obvious, especially to a family that has just come out of debt. With better financial organization, you’ll be able to make smarter financial decisions that will help you save more. To make the best use of the savings you make, it’s important to lay out clear financial goals for your family. You can decide that the savings will go to paying off a mortgage, a family holiday, or college tuition. Discuss about your savings struggles and focus on working on the set goals as a family. Organize some money-making opportunities for your kids like selling gift cards to encourage them to take part in your saving efforts.

Teenagers are a busy lot to handle. Teaching them financial organization, debt management and budgeting from practical experiences is a critical endeavor. It fosters responsibility and is the perfect bonding experience.

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