It seems that there are more things for teens to
spend money on than ever. There are expensive
clothes, video games, mp3 players, and more. If you
aren’t made of money, it’s hard to give your kids
everything they want. That’s why it’s important to
help them understand the value of money.
Start teaching your children about money early.
Starting around age 10, give them a few dollars
every week for them to spend however they want. Make
the allowance dependent on the doing household
chores, but let them choose what they want to do
instead of assigning work. Don’t set limits on what
they can spend it on, but don’t continually buy them
things they want. They’ll soon learn that if they
spend all their money as soon as they get it, they
won’t be able to afford more expensive things they
want.
You should also start early introducing your
children to budgets and how much things cost. Have
them go to the store with you, help you with the
household budget, or watch you pay the bills. Soon
they’ll realize how much some things really cost.
As your child gets older, about 13 or 14, increase
their allowance as you increase their
responsibility. For instance; add their lunch money
to their weekly allowance and make paying for lunch
their responsibility. Once they’re more responsible,
give them a budget for something bigger like clothes
and make them stick to it. They will soon learn that
if they want expensive things, they have to
sacrifice elsewhere. If you find that your child is
not using money for its intended purpose, take back
control of that money until you feel they can handle
it.
Eventually, your child will probably get a job. Take
this opportunity to teach them about savings. Have
them put a percentage into a savings account to use
for college or other pursuits. Also make them save a
smaller percentage for a future purpose (i.e. a
computer, a video game system, etc). Let them use
the rest as mad money to spend however they want. If
you’re worried about what they’re buying, open them
a checking account you can monitor.
Teaching your child the value of money will not
happen overnight. It takes many small steps.
Remember that they will probably mess up along the
way, but mistakes are how they learn.
More Information:
10 tips to raising money-savvy teens
Money Tips and Information for Teens from PBS
Young Money.com
