Why Your Child Should Pay Bills

In a previous article (here) I covered a helpful technique of teaching your child money management skills by using a certain allowance method. The article mentions a sub-method of having your child pay bills. Now I would like to further explain this method of charging your child for the things they use (and sometimes use wastefully.)

Here is a brief sample of what your child's monthly expense statement would look like.

*Phone Bill (100 minutes, 20 texts) $5
Overage rates: $1 per 30 minutes, 50 cents per text

*Keeping up with technology, the phone bill used is referring to a cell phone. If your child does not have a cell phone: 1. Good for you! and 2. You can be more generous with the usage limits on a house phone.

TV Bill (20 hours) $5
Overage rates: $1 per hour

Food Bill (no limit) $3
(Optional: Junk Food Bill : an extra $3 with $1 overage charges.)

Before I say anything else, I feel the need to defend myself. There will be people reading this article, judging by the title that I may be promoting child abuse. In fact, my intentions are quite the opposite and I hope I can convince even those readers of this.

There is absolutely nothing cruel about making your child pay bills! It would be cruel if you took that money and actually applied it to bills (before they are 18...) but with this method you won't be doing anything of that nature. The money your child pays for these bills goes into a savings account, CD, or any preferred form of investment for your child's future.

Also, though I doubt that any parent would question why this method charges overages, I will explain (just in case) that this is one of the best parts of having your child pay bills! Your child will cut down on their phone time. Your child will stop watching so much TV. (Maybe they will even find creative ways to entertain themselves!)

Cutting down on wasteful usage is only one of the benefits of having your child pay bills. My second argument is for those who think that it would be unreasonable to charge your child for food (or any other need.) Well, clearly you are looking out for your children's best interest and you wouldn't want to be unfair. It would be more fair only to charge for those wants, right?

Consider this as an adult. Is food free for you? More importantly, will food be free for your child when they are ready to be an independent, self supporting adult? In the words of Dr. Phil: "You're not raising children, you're raising adults."

Unless you want to continue paying your child's bills (and needs) long after they leave your home, you need to train them now. Nothing is free. Everything costs money. Even things you need.

This method is beneficial because when your child learns to pay bills as a child, they are not faced with the huge disappointment when they become adults that they have to pay for everything. There is nothing cruel about teaching your child this at a younger age. In fact, it would be more cruel to not prepare your child for having to hand over their hard earned money.

Finally, I'd like to agree with any loving parent that bills can be overwhelming, and it is difficult to put your child through that amount of stress. (Especially if you are following the allowance system described here...) You may feel guilty about making your child work for money then taking it away from them. Truthfully, you know that It's a cold world. You may be feel that 'kids should be kids while they can'. However instead of sheltering your child from this reality, you should prepare your child for it.

If your child learns at a younger age what anyone must learn in order to handle the stress of taking on those bills; that money and material things aren't where real happiness come from; than how could this be a bad thing for your child?

Now that I have defended my case, if you agree (that it is a good thing, not a bad thing to have your child pay bills...) then keep reading. Otherwise, we'll agree to disagree and you can go on with your day. I will now list some of the rules I have used on my 11 year old stepdaughter with nothing but positive results.

If your child does not pay a certain bill... they lose that privilege.

(The food bill, obviously, would be an exception. Though your child can say "This is for x bill, you have the right to declare the needs paid if any other bills aren't paid.)

Of course your child can buy the privilege back by catching up on overdue bills, late fees included. This whole method is a mockery of an adult bill situation. If your electric were shut off, you would only owe more money. If your child's TV privileges are lost, there is a fee. Be as real as you can.

Allow your child to set their own budget choices.
If your child prefers to make smaller payments weekly, let them. This may exercise your child's math skills in the process. Your child may show more responsibility with smaller payments than one big payment a month. Again this is a mockery of an adult situation, so offer advice but ultimately let your child decide what they are more comfortable with.)

It is your choice to let your child know where the money is really going.

The hardest part with this method is 'tricking your child'. I have chosen not to let my stepdaughter know that the money actually goes into a bank account for her. If she thinks that money is 'gone for good' she has already dealt with the dread that I experience everytime I sit down to empty out our family's bank account into rent, electric, etc. She'll be ready for it, and at the same time she will have a nice surprise when she graduates high school.

You may prefer to let your child know the truth. Honesty is a strong value that should be taught by setting an example. The point is, consider both arguments before making your choice. You can't change your mind later.

If your child complains about a bill, feel free to show them that "it gets worse".

This is especially effective if your child believes they are actually paying bills. When your child gets into their 'know it all' lecture about how unfair and cruel you are being, be prepared. (Trust me, this conversation will take place!) If your child thinks that paying $5 a month for TV is downright ridiculous, show them the electric bill!

Explain yourself!

If you are asking your kid to pay bills, without helping them understanding what they have to gain from this experience... you could traumatize the poor child. This is one of the times when you do have to explain yourself to your child.

I hope these tips are helpful. Feel free to add and subtract as you feel necessary. Good luck to you and your child!