Your Teen and Money Management
It is never too early to instill in our children the importance of money management and saving money as well as when it is all right to spend some. When this is learned at a very young age, the basic theory of the idea seems to be a little easier for children to grasp, as they get older.
The first time you give your child an allowance, you might be surprised. Children generally are savers or blowers. Some children will put any money they get into their piggy bank and there it will stay. Others will spend every dime they get as if it is burning a hole in their pocket.
Once you have them accustomed to having their own money, you will still be supplying the major items but if they want a CD or a DVD, they must pay for it themselves. One great way to remove the temptation of spending all their money impulsively is to take them to open a savings account, a key part of sound money management. This should be the stepping-stone to a checking account when they get older.
Dealing with Part-time Job Income
Many teens are getting after school and weekend jobs to earn spending money. If your teenager has a job, let her know you expect her to contribute a part of her earnings toward her necessities.
It will not hurt for her to have to purchase clothes or shoes occasionally so she can have an idea of what the cost of living entails. Financial realities are another important aspect of money management.
This does not have to mean she must purchase all of her own clothes; however, if you are spending gas money to get her back and forth to work, she should be expected to pay this extra expense. By paying for this expense, she will learn this valuable money management lesson. She cannot just spend her money on what she would like to have. A portion must go toward necessities.
stack of coins
Everyone knows that television ads are one way of reaching the public, and that suggestive buying is a large part of consumer purchasing. Impulse buying is another. Why do you think that so many items are stacked at the checkout of your grocery store? This is to lure you into grabbing a couple additional items while you are waiting to check out.
Make sure that you instill in your child that helping the less fortunate is one of the most rewarding things she can do. If you really want to make an impression, take her with you one afternoon to the local homeless shelter so that she can see firsthand what a homeless shelter is. Giving to charities and churches will also teach your child the importance of giving back to society as well.
Investing is another subject that you may want to tackle with your teenager. If the scope of this is beyond you, you may need to enlist help. But, who knows? Your teenager might end up on Wall Street. Many times a moneymaking idea that a youngster came up with has turned into a thriving business.
If you give your teenager the basics of money management when it comes to understanding the difference between a want and a need, she will be far better equipped to handle her finances when the time comes. Then, and only then, will she understand what you were trying to do when she thought you were just being mean.
Money Management Topics
There are many topics in the area of money management and your teen. These include…