Is your teen spending money like a star? The budgeting guide every parent needs

You spent what on what?

Dubai-based homemaker Sophie Jacobs recalls her daughter sheepishly admitting that she had spent her entire pocket money on a single restaurant outing. In a generous gesture, she had paid for everyone at the table.

And as a result, she didn't have anything left for the month. “She had just turned 13, and we decided to give her a certain amount of money, and I think this was her first lesson,” recalls Jacob.

Nevertheless, Jacobs emphasises that she didn’t scold her daughter. Instead, she and her husband had a calm conversation with her, discussing what could be done differently next time. “Teaching your teen how to budget isn’t just for them it’s a lesson for us as parents, too,” she says. “We’re also figuring it out, how much is too much, how much is too little?”

Dubai-based Anna Jameson, another mum and business coach, says it took several trials and errors, but she knows now how to help her teenager budget.  “The truth is, budgeting isn’t just about math, it’s about their mindset. And college is often the first time your teen will be financially independent, even if just partially. Teaching them to budget before they get there can mean the difference between a confident student, and one who’s constantly scrambling and calling you for help,” she says.

The two mums help with a list, on how to help your teen budget, with help from Nabila Siddiqui, a Dubai-based therapist.

Start with conversations, not lectures

Teens tune out lectures faster than a buffering TikTok. Instead of sitting them down with a spreadsheet, look for natural openings to talk about money:

These casual, but consistent conversations help make money management feel normal, not intimidating.

Give them hands-on experience

If they’re still relying on you for spending money, that’s still fine, but slowly hand over some control. Encourage your teenager on managing a small budget, be it an allowance, from parti-time job earnings or birthday money.

Pro tip:

 Do you really need this? Or do you want this?

Do they really need that Nirvana Box set? Or, can it wait when they have earned a little more pocket money? Budgeting is about trade-offs. “So, when you help teenagers understand the difference between what they want, which could be anything range from extra coffees to expensive phones, to what they need, such as books and groceries, you set the stage for smarter spending,” explains Jameson.

Ask questions like:

Encourage the 50/30/20 rule

This helps them with a structure, without making them feel restricted. It lays the groundwork for managing a real paycheck, one day.

Forgive the mistakes

Your teen will overspend. They will buy shoes that they don’t really need, or a dress that they just were sure they needed to have. They will forget to budget.

Here’s what parents can remember:

There’s no one-size-fits-all number, but a good rule of thumb is to simulate what they might live on in college. That means considering:

Average range: AED 400–800/month, for high school teens in the UAE learning to budget. For college students, this could go up depending on lifestyle and city, explain the mums.

Be consistent, not reactive

Resist the urge to top up every time they run out. If they burn through their monthly allowance in a week, let the month play out. It’s a powerful learning moment. That said, create a soft safety net:

• Emergencies: Let them define what counts.

• Savings match: Offer to match whatever they save toward a long-term goal, it teaches delayed gratification.

Let them manage real world costs:

Once they’re older (16+), start assigning real-world responsibilities:

• You manage your phone bill now.

• You’re in charge of your school lunch budget.

• You save up for your own birthday gift for a friend.

• Giving ownership builds confidence and accountability.