What happens when teenagers get to decide how to spend the family budget?

Groceries, clothes, activities and housing can all eat away at your pay slip, leaving many wondering where the money went.

So what happens when teenagers take over the budget?

That question is explored in the new series of ABC's Teenage Boss.

The social experiment sees 10 teenagers take control of their family finances.

The teenagers are given free rein over the family's spending money, however, costs, like mortgage payments and school fees, are fixed.

Now in its fourth season, host and popular children's entertainer Emma Watkins issued the challenge to 10 Tasmanian families, half from the north of the state and half from the south.

The show follows them for one month and tracks whether the teenagers have saved money, achieved their saving goal to purchase an item, which they establish at the beginning of the experiment, and what areas the teens struggle with.

"It's a show where the parents are quite stressed," Host Emma Watkins said.

"Handing over all of that control to their teenagers is a big deal, not just for themselves, but for the other children in the family."

Ms Watkins said the teenagers start the show with optimism, hopeful they can take the family on a holiday and buy something they've had their eyes on.

"That doesn't tend to happen," Ms Watkins said.

"Sometimes the parents feel the need to step in and keep the teens on track.

"That's where I come in."

The teens are in charge of everything, including leisure activities, petrol, public transport, home maintenance, and garden maintenance.

Despite starting out with the best of intentions, reality sets in, and they are forced to make some tough decisions - with one predictable cost getting in the way.

"The biggest cost is always food and groceries," Ms Watkins said.

"I think it's a funny irony because teens are always hungry."

It's the first thing teenagers try to cut out of the budget.

"They just cannot believe how much money goes on food, and they feel that because it's so high, it's the easiest to cut," Ms Watkins said.

"They quickly realise they need that money back."

Another area where the teens struggled was budgeting in the context of day-to-day living.

Similar to what happens to many, life sometimes got in the way, making budgeting more difficult than it needed to be.

"That's life. There's school, work, and outside activities - it's easy for them to fall off the path," Ms Watkins said.

"I don't want to spoil it, but all the teens did a great job."

Previous seasons of the show have been filmed on the mainland and focused on the financial and budgetary pressures there.

The key concerns and struggles remained the same in Tasmania, except for one aspect.

Normally, the teenager will want to organise a family holiday during the show.

In the case of the previous season, filmed in Adelaide, South Australia, this was as simple as packing the car and picking a spot on the map.

For the Tasmanian teens, getting the wheels moving on a family holiday proved more difficult.

"A lot of the teens wanted to take a trip to Melbourne, for example," Ms Watkins said.

"Taking into account flights, expenses and Uber - that was quickly brought to their attention once they got to the mainland.

"That's something we hadn't seen before."

Ultimately, Ms Watkins said the teens did a fantastic job and knew more about budgeting than people think they do.

"Teens, and I mean most children, are very aware of the situation," she said.

"They might not be aware of the details, but I think children are really observant and most of them were aware that there was a need for the family to save money as a whole and for their own personal goals."

Ms Watkins added the standout of the show was the creativity on display and the learning possibilities adults can gain from watching it.

"I'm always in awe of their creative thinking, and I think that's something adults can learn from teens," she said.

"They definitely thought about their options to save money in more lateral ways than normal."

Feedback from the families involved was also positive, with participants labelling the experiment as a valuable experience.

"We received so much positive feedback from families about the show," Ms Watkins said.

"I think parents and families, as a whole, will really enjoy the show.

"We just had the absolute best time."

Teenage Boss: Next Level, premieres Friday, July 25 on ABC iview and July 26 on ABC Family.