Make the Teens Money Smart
Personal Finance September 7th, 2007It isn’t easy making the teens understand the value of money. The older they get the more they want to feed their vanity. Their spending habits are easily influenced by their peers, siblings and not to forget the TV stars. To be able to make it in the real world, it is important to make the kids learn to manage their money at a young age. And trust me it’s a major concern among the parents because the run-of-the-mill parental lecture does not work here. My aunt was facing the same problem in making her fourteen year old daughter teach the value of dollar. She was trying her best to make her daughter appreciate the value of money and manage her own spending habits, but that was no easy task. But she discovered a few tricks that really did wonders. And I’m gonna share those magic tricks with you guys. So, settle in and read for fun!!!
- Start giving monthly allowance to your kid: It will make them more responsible. The allowance should cover expenses for their new clothes, school supplies, video games, sports equipment and other expenses. Leave it to your kid to make their own choices, but remember that you don’t dole out any more dollars after the money’s gone. This will make them understand what budgeting is all about.
- Teach your kid the dos and don’ts of shopping: Explain to them the importance of shopping with a list. When you shop with a list it will not let you do impulsive buying (which most of the kids are fond of) and will keep you to just your needs. If they are using credit cards advise them to use credit wisely. Make them understand the costs of credit and the affects of good and bad credit.
- Explain your kid the family’s financial situation: Tell them the family resources are limited, they should understand from where the money comes and how it needs to be spent.
- Be a good role model: You can not expect your kids to be money smart when they are watching you spending on unnecessary items.
Update:
Thanks to Roddick for adding those points. I will cover those in my next post.
Technorati Tags: teen and money, teenagers and budget, teenagers, money smart
September 18th, 2007 at 2:42 am
The earlier we start teaching the kids how to handle money the easier it becomes for them once they are set independent. Great post
September 18th, 2007 at 2:44 am
As a younger one my family gave me the adequate information and learning by experience resulting in a deeper knowledge about management of finance at this age. I used to go with ma during her bank trips. I think that helped a lot.
September 18th, 2007 at 2:46 am
My child is quite young now but I wont forget to impart what I learned from her today. Thanks Nelly
October 17th, 2007 at 2:13 am
Very good post, some simple but very effective tips. I think you can add following points to the post:
1) Documenting the expenses as a part of budget. Budgeting is very important but often ignored. So help them start. You can give them some simple tools for it.
2) Stay away from payday loans.
I will add more points when I can find some time.
October 17th, 2007 at 2:27 am
Thanks Roddick, those are some great points, as you said “simple but effective points”.