Teaching Teen Money Management

Question

Our teenaged daughter is a hard worker and is great about saving her money. But she is about to blow it all on an exorbitantly priced prom dress to the tune of $500. As parents we feel it is our duty to guide her into a more reasonable choice, knowing she will regret the loss of that much money for a one-time event. We were just talking as a family the other day that if we had unlimited funds, there would be some purchases we would not make just on principle. Truthfully, the thought of that much waste is turning our stomachs a bit. What are your thoughts?

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