Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years, teenagers have been earning billions of dollars through summer jobs and part time after-school work. Many of these teenagers have gone on to spend all of the money that they have made, while only a few have saved it up, only to end up spending on a larger purchase down along the line. Kids these days need to become more aware about their income and investment basics so that they can learn how to better manage their money as they get older. If you want your teenagers to manage their money more effectively in adulthood, then they absolutely have to learn the investment basics now.
Start training your teen about money.
It is your responsibility as a parent to begin training your teenage children to use their money more wisely now while they are listening. Here are some of the things that you can do to teach your children how to save and invest wisely so that they can have some money left over at the end of the weekend following payday.
1 - Lead by example!
This seems simple but it has an extraordinary impact. Your children are going to look at how you spend money and act accordingly. If you show them how you allot money to different purposes for household needs, bills and budgets, they will learn how to do the same over time.
2 - Help open a bank account for your teen.
Establishing a bank account for your teenager will allow him or her to have instant financial responsibility. Sit down with them and explain how they can manage their own account, and take a moment to talk about the rewards that can be received once they have saved enough money. These savings, for example, could go toward their college tuition or even to purchasing a car. The entire process of saving and earning will give them a significant sense of accomplishment, and they will have something concrete to show for their hard work and dedication to saving and investing wisely.
3 - Construct a spending plan for your teen.
Teens tend not to like the idea of budgeting, but you should not allow them to get by without a budget or a spending plan just because they don’t like the idea. Instead, you and your teenaged son or daughter should sit down and build a spending plan that will help them get excited about the idea of earning, saving and investing their money. Take the time to teach them the differences between what they need and what want, and what things are worth saving for. Once they know what they can do without, it becomes easier for them to save their money for investing.
Photo Credit: 1
Originally posted 2008-11-12 05:57:23. Republished by Old Post Promoter
Related Articles -
Save Money with These 4 Tips [caption id="attachment_402" align="alignleft" width="160" caption="Balance your checkbook!"][/caption] There are ways that you can save money, and all you need to do is learn about managing money wisely to do it. You are not necessarily being frugal, per say, but rather you are learning how to be wise in the decisions...... -
What Are Legitimate High Yield Investments? In this day and age, everyone is hurting for money, and locating legitimate high yield investments is not easy. Aside from scams, another consideration that needs to be made is the potential return on any investments that you make. Despite the fact that there are many attractive investment opportunities available...... -
Loanio Roundup - P2P Lending and More [caption id="attachment_447" align="alignright" width="240" caption="What investments are you making?"][/caption] Good morning readers and welcome to another edition of Loanio's weekly roundup. Below you'll find several great articles under the categories of small business, the economy, p2p lending, and investing. We hope you find them helpful and interesting. The Economy: Smart...... -
Teach Teens to Save Money [caption id="attachment_314" align="alignleft" width="180" caption="Teach your teen about money."][/caption] One of the biggest reasons why having a teenage child can be difficult is because teenagers tend to spend money easily and freely without any real regard for what goes into earning that money in the first place. Teenagers tend to...... -
Child Savings and Investment [caption id="attachment_299" align="alignleft" width="160" caption="Children cost money - are you ready?"][/caption] Having children is not a cheap proposition these days, especially when you consider long term costs. The older your children become, the more they are going to end up costing in the long run. High education prices, for example,......
Related Sites -
Teaching your kids about money What one thing do you wish you could change about your financial situation? Have you given your children the knowledge to make sure they don't fall into the same hole? Are you teaching your children the importance of saving for purchases? What about when you go out to the store,...... - Pay down the mortgage, or invest? Scott Burns on MSN Money debates mortgage paydown and investment in his article Dilemma: Should you pay down or build up? The subtitle of the article states that "[s]ometimes it’s smarter to use extra cash to pay off your mortgage; sometimes you should stoke investments. It all depends on your......
-
Learning Basic Money Management Skills Whether economics is your idea of a great way to fight insomnia, or you just didn’t get the benefit of learning about money management early on, it is never to late to learn the basic skills of proper money management. We highly recommend taking a brief course on finance if...... -
does innovation require desperation? One thing I learned over the period of time that I was "problogging" was that working at home is a train wreck for me. Part of it is simply that I have no backbone. I don't have the steel core that allows me to shout at the rest of...... - Top 10 List of Personal Finance Lists I have been reading a lot lately trying to bring myself back up to speed about personal finance matters. In the past two weeks, I came across a lot of good resources. Since I am having a serious case of writer block today, I will just share links to 10......
Tags: adulthood, billions of dollars, budgets, college tuition, enough money, financial responsibility, household needs, investment basics, Investments, kids these days, money management, parents, part time, purchasing a car, rewards, summer jobs, teenager, teenagers