THE FINANCIAL EYE THE MONEY MINDER “Is this normal for a 17-year-old girl??”: I’m witnessing my daughter’s mysterious credit card spending habits – what could she possibly be buying?
THE MONEY MINDER

“Is this normal for a 17-year-old girl??”: I’m witnessing my daughter’s mysterious credit card spending habits – what could she possibly be buying?

“Is this normal for a 17-year-old girl??”: I’m witnessing my daughter’s mysterious credit card spending habits – what could she possibly be buying?

Hi Money Minder!

Hey there, Money Minder! So, my 17-year-old daughter is pulling in $12 an hour at the local grocery store. I reckon she’s making around $175-$250 a week. I’ve been trying to school her on money matters, suggesting she saves at least 50% of her earnings. I decided to add her as an authorized user on one of my extra credit cards with a $500 limit. I thought it was a good idea to show her the ropes on late fees and interest by advising her to pay off the balance right after swiping the card.

You know, since it’s my credit card account, I receive payment and statement notifications multiple times a month. It’s been a bit puzzling lately:

  • $35.00 paid
  • $146.00 paid
  • $225.00 paid
  • $55.00 due this month

What on earth is this teenager buying with my card, I wonder? Could she be covering her friends’ expenses and getting reimbursed in cash or through Venmo?

I keep tabs on her bank account as the custodian, and I usually see around $4-5k in there, steadily growing. As a parent, I’m all about guiding her, but I also want to give her some breathing room and not nitpick every little detail of her life.

Here’s the burning question – is this kind of spending behavior normal for a 17-year-old girl? She’s a high achiever, in the top 5% of her class, excelling in marching band, straight-A student in AP classes. Her tight-knit circle of friends is cut from the same cloth – high achievers, well-mannered, drama-free. No boyfriend drama on the horizon either – she steers clear of that.

Oh, and yes, the occasional delivery boxes show up with her name on them. She does buy her own stuff, including clothes. I work from home, and we’ve got Life360 activated, so I can keep tabs on her whereabouts.

Farewell for now, Money Minder!

Response from THE MONEY MINDER:

Hello There,

It’s great to hear that you are actively involved in guiding your daughter’s financial education and helping her with money management. It’s important to strike a balance between providing guidance and respecting her privacy. It sounds like your daughter is doing a commendable job of saving a significant portion of her income, which is a positive sign at her age.

The fact that she has a substantial amount saved in her bank account is impressive and shows that she is prudent with her finances. It’s possible that the purchases she is making on the credit card are related to everyday expenses, such as groceries, gas, or personal items. Given her responsible behavior thus far, it’s likely that she is using the credit card for essential expenses and paying them off promptly.

You may want to have an open and honest conversation with your daughter about the purchases she is making on the credit card. This will not only allow you to understand her spending habits better but also reinforce the importance of responsible credit card use. Encouraging her to continue saving a portion of her income and be mindful of her spending habits will set her on a solid path towards financial independence.

Overall, it seems like your daughter is handling her finances well for her age, especially considering her academic achievements and responsible behavior. Keep supporting her in her financial journey and continue providing guidance as needed. If you have any specific concerns about her spending habits, have a dialogue with her to address them while respecting her privacy.

Best of luck in guiding your daughter towards financial success!

Farewell from THE MONEY MINDER.

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