When my kids started their "real jobs", earning a paycheck, I let them blow a few and manage it themselves.
I too, had tried to instill saving as they were growing up. I think they need to get it out of their system, then they'll start saving.
My kids now pay the most important "bill" they have every paycheck. I told them before you pay rent, food, car, insurance ... pay your savings account. Make that your priority bill. ('cuz I know the rest will get paid too)
When Shortman had a paper route, he had to put 1/2 or $20 - whichever was more, in his savings account. Of course, he was 12 then, so it was easier to dictate.
I think that if you stand firm, and not bail him out, he'll come to the conclusion himself that he needs to save some.
Can't blame the kid. It's a lot easier to save up when your parents provide everything you want.
We're a Christian family, so tithing comes into the mix... But what we heard, and what we're planning to do - even when it's their money, once they have money that is: 10% save, 10% tithe, and the rest is theirs. Along with all the other valuable advice, we want that to be the standard. Because on the dollar, that still leaves $0.80 to play with. How this is actually going to play out, I don't know. But I'm hoping to teach them to save, and stay out of debt.
Mine is 4, so no kid advice, but here is what my parents did for us. (And I am 32, so it did work)
We both had jobs and we both had to save for things we wanted that were deemed too extravagant. We did have to save, but charity was something that we didn't save for.
Not to say that my brother and I don't give to charity. We both always give to those that have less than we do. (Because we can't bear the thought of anyone doing without.) I also donate time to charities that need help as much as they need money.
Don't worry just yet. Let the first couple of checks blow away...then if he starts to get crazy, sit down and have a talk.
My daughter has a savings account. She divides her money into thirds. She keeps one third and the other two thirds go into savings.
we do the 10/10/80 thing too--10% to church (or charity), 10% to savings and 80% to everything else.
I'm a big believer in 10/30/10/50.
Ten to charity.
Thirty to savings.
Ten to blow.
Fifty to practicality.
But then again I'm putting a husband through graduate school with the paycheck of a stay at home mom.
What do I know? 
I think the "school of overdrawing your checking account at this tender age" might just do the trick. Once he sees all those fees involved he may pay a lot more attention. I haven't seen a book like that either...weird.
I wish I had advice. I have one who hangs on to every cent she makes and one who spends it before it's even in his pocket-and they've been raised in the same house. I suspect my son is going to have some lean times in his future and a few missed recent social events that required $$ (and his dad and I wouldn't cough up a loan)seem to have him actually thinking about a budget. Good luck.
That is really funny, Mrs. G. My 12 year old son is the same way. No sooner have I given him his allowance that the money disappears!
If you find a good program or concept PLEASE let me know! My SS is the same way, money burns a hole in his pocket and he has no concept of money. I blame his mother for part of that. But we are going to look around for a money managing class for teens for him to attend this summer. maybe something will stick!
Hi there - I work in Marketing at a large Credit Union in upstate New York and it's a big challenge educating teenagers on finances! If you go to the link and check out the left menu, you will see all sorts of resources on managing money. This is geared specifically towards youth and I hope you will find it useful! Let me know if you have any other questions.
Good luck! I've got no advice because I'm finding myself in the same problem with my 8 year old who wants to blow every red cent that comes his way, yet we're also "Those shoes are too expensive" parents. I am believing I have to let him blow it enough times to be disappointed and "get it" before it really matters (like when he has to buy his own groceries--hahaha).
Unfortunately I have no advice either. I come from a long line of poor money managers. We just didn't have any, so we incurred debt. Hubby remembers having the electricity turned off regularly because no one remembered to pay the bill. Both of us got allowances, but not with any regularity. We just knew we had nothing, and our parents couldn't get it for us. We are trying to come up with a budget for ourselves. We do have a savings account and we contribute regularly to a number of charities (including the one hubby works for), but the time is coming soon when we'll need to replace the 12-year-old cars. Probably with 10-year-old cars.
I do remember my first paycheck - it was $30. I took it and opened a checking account with $20. I kept $5 for my lunch and bus money, and I put $5 down to layaway a new suit for my mother. it took me all summer, but I gave them $5 every week and got her a new suit in time for fall. My savings went straight to hell, er, college two years later.
I think this is the biggest snare there is. There is so much coming against any proper teaching in our consumer society. Only one of my children had a good class (at college level) on managing finances.
This is one of the sorriest states of our education system (or maybe it is purposeful, since financial bondage is in the interest of profiteers).
I sort of like Moosh from Indy's formula but know this: he must suffer. You need to live through one mistake with consequences. Then, you get it.
We believe in life lessons in our home and I think everyone has to learn about managing money the hard way first in order to get it right the second time. My oldest is out on her own and soon learned all those things I used to tell her about budgeting is so true. Better to learn young I say then end up 30 and bankrupt. I think it's a great idea finding a good book though. If you find one give it a shout out please.
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