Teaching Teens About Money

money and savings (Photo credit: 401(K) 2013)

As an adult, you undoubtedly understand the importance of financial planning and how difficult it can be to recover from money mistakes. If you have a child, then you certainly want the best for him or her, and you likely don’t want that child to repeat your own mistakes, especially as they relate to money. To set your teen on a bright financial path, all you have to do is be open and honest with your child and to provide a little loving guidance along the way.

Teens often make money of their own. Whether they baby-sit, mow lawns, or have part-time jobs, they can pocket quite a nice bit of cash. Unfortunately, teens tend to love trends, and following trends often means spending money. If you find that your teen is spending every dollar, sit down with him or her and have a talk about why saving is important. Open a savings account for him or her or just encourage your teen to put aside a set amount of each dollar earned.

For non-working teens, the tried and true chore-and-reward system works just fine. Make your children work hard for the money they earn, and they’ll be less likely to blow it! Remember, what you teach your teen now has the potential to last a lifetime, so don’t be shy when it comes to honing in on those financial “learning moments.”