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Summertime can provide a good opportunity to help teach teens important
financial habits.
Parents of teens all know the familiar situations: It’s four days
before your teen’s allowance is due, and he or she is asking for
a loan to carry him through. Or, you told your teen that extra allowance
was supposed to cover clothing as well as extra items. Now your teen
says he can’t afford a new pair of sneakers, but has a Walkman.
Teaching teens to manage their money can be a real challenge for modern
parents whose young people are immersed every day in our consumer culture.
Here are five strategies that have proven effective for several parents:
1. Don’t be overly speedy in bailing your teen out of a financial
“crisis.” If lunch money gets spent on a new computer game,
let the teen bring a sandwich from home. Living through the consequences
of actions and decisions can provide strong motivation to plan ahead
in the future.
2. Help your teen set financial goals. If your teen would like to buy
a new stereo, for example, help her establish set amounts she’ll
have to save, over a set amount of time, in order to reach that goal.
3. Make sure to talk about the times you saved for special items, both
large and small, including vacations or cars. Most people cannot afford
to buy everything they want. Show your teen that by planning and saving,
it is possible to achieve even very large goals.
4. If your teen has a job, don’t allow him to spend all his money
on himself. If your family can meet its basic needs without that contribution,
make sure your teen puts away half of the money she’s earned for
college or further training after high school.
5. Make sure your teen knows that “budget” is not a bad word.
The whole idea is that using a budget enables people of all ages to
take control of their resources and their lives.
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