Tips for dealing with teen money issues
April 23, 2009 by Jennifer Chait
Filed under children's activity, family
We’ve looked at how to get little kids off on the right money foot, but teens can be a whole other situation. Not all teens are money-spending loons, but teens do seem to want a lot of stuff, so here’s some ideas about how to help them learn to manage their money…
Start younger than the teen years: Hopefully, you did talk to your kids about money from the get-go, because that sets your teen up for money know-how early. If you keep mum about money responsibilities, you can’t expect your teens to act responsible about money issues.
Make a saving budget for big items: Teens need some free spending money each week, but if they want to save for big purchases, it can help to see it visually. Help them to jot down how much they’d need to save per week or month in order to afford a bigger ticket item. Then they can know how much they have available to spend.
Deposit cash for your teens: If you put spending money directly into a savings account for your teen, rather than their pocket, they may be more likely to keep it in the bank.
Match funds like an employer would: When your teen grows up their job will likely match retirement funds if not, their savings or bonds will grow with time. Give them that sort of experience. If your teen agrees that saving some money each month is a good plan, match their savings up to a specific amount. This is great motivation to save for a big ticket want or even long-term goals.
Get them gear without making them dip into savings: Gift cards make great holiday gifts for teens because they get the gear they want and can save their cash.
Provide for basics: Some parents (mine included) feel like teens should pay for everything from clothing to cosmetics to shampoo. If you had kids, it’s your responsibility to buy them the basics they need. General clothing, shampoo, and so on should be covered by you. Extras like fancy lip gloss or expensive boots are another story, but don’t make your teen provide for all their own stuff so early on – that makes the teen years pretty stressful.
Let them make mistakes and live with them: Everyone makes mistakes. If your teen continually runs out of cash mid-month, don’t always cover the extras they want. If they know they can always get more money (if they don’t budget) they won’t bother with budgeting. Don’t belittle their mistakes though – rudeness is lame. Discuss better options, but don’t rag on them this way they’ll come to you with questions.
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Hi,
I totally agree with this. We need to start discussing money issues at a young age and then give them financial responsibility that is age appropriate.
For a free weekly video that gives teens money tips, visit http://www.kidscashcoach.com.
Let’s give our kids these tools so they don’t struggle the many are today!
Patti Handy