Teaching Teens The Value of Spending and Saving Money
Submitted by xpertchick
Raising teens to appreciate the value of a dollar is very challenging in a society that loves to spend. The older they get, the more expensive the things they want or think they need. If you don't teach them to manage their money wisely at a young age, they won't the value of spending and saving that money.
Here are a few tips to help your teen better appreciate their money and manage their spending habits.
1. Give them a small allowance until they are old enough to get a part time job, and then discontinue the allowance. When you gave them an allowance, it most likely isn't enough to buy the things they want, but it will help them decide what they want to spend that money on, how much and how long it will take to save that amount.
2. Help them open a checking account while they are teens, and show them how to balance a checkbook every month.
3. Encourage them to think of others, and not only herself. Possibly donating a very small amount of that money to a worthy cause or charity.
4. Buy them items or articles of clothing that are not so expensive, and spread out those purchases evenly throughout the year. Anything extra or too expensive they can buy themselves if they really want it.
5. Show them the value of a great bargain. Shop at yard sales and thrift stores for saving money.
6. If you buy them an inexpensive car when they're legally able to drive, have them pay for the gas and insurance. This will be a difficult adjustment at first, but will teach them to budget their monthly income.
7. Have them cover their own entertainment. If you take them out to eat you can pay, but if they want to go with their friends, they'll have to pay. It's surprising how often they'll decide not to overspend their money.
8. Don't expect them to pay all expenses themselves. You could cover a cellphone bill every month, preferably one thats on a family plan. The point is not to make your teen 100% independent quite yet, but they should be close to being able to take care of themselves or at least balance a small budget before turning 18.
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