Teens and Money Management

Many parents struggle with ways to teach teens financial responsibility. Some think that teens should hold jobs and pay for their own expenses but then wonder which responsibilities the teen should take on. Others give their teen allowance and expect them to pay for certain things but then again there is the struggle of which responsibilities to give. While others do none of the above but just give the teen whatever they need when they need or want it without a thought to what the teen is learning or what responsibilities the teen should have.

While every teen is different and may not respond to the same things there are a few things you can do in parenting teens that will help instill financial responsibility in your teen. Here are just a few ideas.

• Set the example that money is not the most important thing in life. If you live a life where your main focus is earning more, saving everything, or over spending these teach a teen about excess in any given direction. Teens need to learn moderation. They should know that you have a work ethic and you value your job and that you save a certain percentage on a regular basis. They should also see that you spend accordingly. You don't spend more than you make and that "getting" things is not the focus in life.
• Let your teen be in on a few major spending decisions. Maybe you are buying an expensive television, remodeling or purchasing a car. Let your teen see how you develop a budget with what you have and what you have saved and then let them help with deciding which things you are willing to splurge on and which areas you can cut back on. By being an active participant the teen learns more than words can say.
• Talk about it. This does not mean that you have to divulge all financial information to a teen if you don't think it is appropriate but if there are financial stresses in the household it can be a great teaching time for your teen. Rather than have them see you let the financial stress tear your family apart, set the example that you can all come together to help with the issue at hand. You will be pleasantly surprised at the ideas teens come up with and ultimately what they are willing to give up or do to help.
• Teach about instant gratification as well as the difference between wants and needs. Teens who do not grow up with parents who refrain from every want have a hard time understanding why they can't have everything that they want later in life even when their income doesn't support it.
• Live and learn. Let your teen make some mistakes and pay the natural consequences, literally. There is no better teacher than life's natural consequences.