Money Management

When You Should Teach
Your Teen Money Management

Ideally, start teaching your teen money management when they are kids. Otherwise there is no time like the present.

Don't put it off. Start today.

How do they receive money?

Is it from allowance?

From a part time job?

Maybe there are like the thousands of teens that have started their own businesses?

It doesn't matter where they get their money from. What matters is how they manage it after they receive it. And that they start building habits now, so they have them for life.

Teach Your Teenagers Money Management In High School

Does your Teen's school have a program to teach them about how to manage money. Unfortunately most don't. That means that they will learn it one of three ways:

Trial and Error - If they haven't learned about how to manage their money then they will most certainly have learned from the media or from your habits. These days, teenagers have the most disposable income per dollar received. Think about it, they don't have many fixed costs. The media and corporations are doing everything they can to get those dollars. Chances are with no guidance they will go straight to a "spending it till it's gone" money management style.
From Their Peers - chances are their peers are also bombarded by the media. They are sent messages that they have to have the latest and the greatest stuff NOW. And then of course they will pass that on to their peers. Next thing you know, as adults, these kids will be trying so hard to keep up with the "Jones'" that they will be in serious debt.
From their Parents - This is where you come in. You get to show them today how to manage their money, so that in the future they don't have piles of debt. By teaching your teen money management, not only will they be financially responsible in the future, they will learn the value of money, and most likely that instant gratification doesn't always lead to happiness.

Now it's time for you to choose. Which way would you like them to learn about money?

Teach Your Teen Money Management Before They Go Off to College

It is your job as a parent to teach your kids to be responsible adults. This includes teaching your teen money management. You want your kids to live happy and successful lives. You only have 18 years to teach them this, even thought they will live 4-5 times that long.

Teach them to manage the money they have. Create a plan with them, then ask them if you can hold them to account for it. Ask if you can call and ask how their plan is going once a month or week. Show them the dangers of not following the plan. Explain to them some of the mistakes you made when you were on your own for the first time.

They may have a credit card for the first time, or they most likely have a budget to live on. Chances are if they aren't taught how to use either, they will end up in debt and stressed about money.

Also, college is the first time they will most likely be offered a credit card directly from the credit card company. Since credit and credit cards are so persuasive in society, you may assume that they already know how to use them. Most likely they don't! Teach them how to be responsible with credit cards and how to use them. They are 18 now and are responsible for the charges themselves. If they mess up early it may stay with them for life!

Teach them not to fall into the credit trap. Only spend what they have and to PLAN for their time in school.

Other Interesting Articles

Through my research for this page for teaching teen money management, I came across this great company that does seminars and presentations in high schools, colleges and universities, teaching teens about managing their money and what will happen if they don't know how to! Check out their videos, or their website at www.funnymoneyinc.com