Don’t just give your teens an allowance; teach them to earn it by working, i.e. doing chores. Teach them to save money, by opening a savings account and depositing a portion of their allowance each week. It is important to make rules on how frequently they can make withdrawals. Have them keep a log of how much they spend and what they spend it on. This will not only show them what they are wasting money on, but it will allow you to keep tabs as well.
A recent article in News.com claims,
“Some children get as much as $ 50 a week pocket money… But research shows teen lifestyle costs a packet.” The study showed that older teens are earning an average of $ 245 per week – A combination of working, pocket money, chores, and/or money gifts received.
As teens get older and begin working, this is not a reason to disregard the rules of money management. They should still be required to put a portion into their savings account and they should still be held accountable for their spending. This may be a touchy subject and, “It’s my money,” is sure to come up, but rules are rules, and you must stick to them.
ON THE SAME PAGE
It is important that everyone work together. If you have a spouse, you must be in agreement with the game plan. If one parent gives in, it doesn’t benefit anyone. There is no one quick fix to solving financial problems, but the best method is prevention. Teaching your children money management skills will let them know early on that they have to work for things that they want, that they must save money, and that they should spend their money wisely.
TIPS AND IDEAS
Here are a few tips that will help you create a game plan for your child:
1. Create a realistic budget and stick to it. If you have younger children, adjust their allowance, as they get older.
2. If the chores have not been completed, don’t be afraid to not give them allowance for the week.
3. DON’T BUY ON IMPULSE. Don’t get sucked into the “Please, please, please I gotta have it,” line.
4. If you have an older teen, consider giving them a cash card instead of cash. You can load their allowance onto the card and they can use it at stores, or make withdraws at an ATM machine. At the end of the month, you can sit down and review the purchases made. Make sure that a portion of that goes into their savings account.
5. Consider giving your child a “bonus” for doing well in school or taking on extra chores. This will show them that you can be rewarding for doing well.
Taking the time to teach your children good money management will probably be one of the greatest investments in time you will ever make. These lessons will prepare your children with the skills to secure a good financial future.
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