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Teaching Your Teenager The Value Of Money

Nowadays, it seems as thought there are a growing number of things for teenagers to buy every day. There are designer sports shoes, mp3 players, expensive clothes, video games and much more. If, like most people, you do not have pots of money, then it is clearly hard to give your teenagers everything that they want and that is why it is important for us to help them understand the value of money.

It is extremely important to begin to teach your kids about money at an early age. Beginning at about age 10 you should give them a few dollars every week that they can spend in whatever way they want. This allowance should not 'free' but has to be dependent on their doing some household chores. You should however work with them and let them decide what they want to do rather than assigning them specific jobs. Additionally, it is important that you do not set limits on what they can spend their allowance on and also that, once they are getting an, you do not then simply go on buying them things they want. They have to, and quickly will, learn that if they spend all of their money as soon as they receive it they will not be able to purchase some of the more expensive items they want.

Additionally, it is very important to teach your children the ins and outs of budgeting at an early age and discover just how much things cost. Take them to the mall when you go out shopping, get them to help you with working out the household budget and allow them to look over your shoulder when it comes to paying the bills. It will not take them long to get a sense of exactly how expensive everyday living can be.

As your kids get older, and certainly by the time they have reached the age of 13 or 14, gradually increase both their level of responsibility and their allowance. For instance, add their lunch money to their allowance and give them the responsibility of paying for their own lunch. As they learn to accept greater responsible, teach them to create a budget for larger items like an mp3 player or clothes, and force them to stick to their budget. Once again, you will find that they will soon learn that if they want to buy expensive items, they need to make sacrifices.

Do not forget too that you can backtrack. If you find that your kids are not learning to use their money sensibly, then step in and take back control of that money until you are satisfied that they are able to handle it.

A some stage, your teenager will get a job and this is one of the best points at which to introduce them to the idea of saving. Get them to put part of their wages into a savings account which they need to come to regard as funding for major projects, like their college education or other significant pursuits. Additionally, get them to put a small proportion of their wages on one side to fund less important, but still expensive, things like a computer or video game system. Having made these provisions, you should allow them to spend the remainder of their money in whatever 'mad' manner they choose and, if you are concerned about where they are spending their money, then open up a checking account for them that you can monitor.

Teaching your kids the value of money can be a lengthy and slow process that takes numerous small steps and will not be without its difficulties. Your kids, and especially your teenagers, will undoubtedly screw up but do not forget that we learn perhaps our most valuable lessons as a result of the mistakes that we make.

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