Teen wants a cell phone? Financial experts say make them part of paying for it

(InvestigateTV) — When a teen starts asking for a cell phone, experts say parents should have a financial plan in place before stepping foot in a store.

Cherry Dale, vice president of financial education at Virginia Credit Union, said the key is not just which phone to buy — it is making sure the child understands how much owning a phone actually costs.

Dale said parents should discuss upfront who pays for what. If a teen wants the newest model, having them contribute part of the cost — through summer work, chores or a part-time job — can help them understand the value of money.

“I think we as parents just want to protect them,” Dale said. “And this is like something we do. We pay those bills, but the more we can have those conversations with our children to make them realize the cost of merchandise, the better off they’re going to be as they’re growing and understanding how to manage their own finances.”

Dale said ground rules should be established not just at home, but with school policies in mind as well.

“Having conversations about when to use those products is really important,” Dale said. “Some schools are banning cell phones. Some schools allow them in certain situations. So, making sure that your child knows the boundaries around those individual devices is important.”

Beyond the purchase price, parents should account for the monthly bill, accessories and insurance when calculating the total cost of a phone. A family phone agreement spelling out expectations can also help prevent disputes later.