Teaching A Teenager The Value Of Money

It seems as thought there are an increasing number of things for teenagers to buy each day. There are mp3 players, expensive clothes, designer sports shoes, video games and so much more. If, like nearly everyone, you do not have pots of money, then it is obviously hard to give your teenagers everything they want and that is why it is very important for us to help them understand the value of money.

It is critically important to begin teaching your kids about money at an early age. Starting at around the age 10 you should give them a few dollars each week which they can spend however they wish. This allowance should not 'free' but has to be dependent on their undertaking some household chores. You need however to work with them and let them decide what chores they wish to do instead of giving them specific jobs. In addition, it is important that you do not set limits on what they can spend their money on and also that, once they are getting an, you do not then continue buying them the things they want. They have to, and soon will, learn that if they spend all their money as soon as they receive it they will not be able to buy some of the more expensive items they want.

In addition, it is vitally 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 shopping, get them to help you with the household budget and allow them to watch you when it comes to paying the bills. It will not take them very long to get a sense of precicely how expensive everyday living can be.

As your kids get older, and without doubt by the time they have reached the age of about 13 or 14, slowly raise both their level of responsibility and their allowance. For instance, add their lunch money to their allowance and make them responsible for paying for their own lunch. As they accept more and more responsible, teach them to create a budget for bigger items such as an mp3 player or clothes, and force them to stick to their budget. Once more, you will find that they will quickly learn that if they wish to purchase expensive items, they need to make sacrifices.

Remember also that you can always backtrack. If you find that your kids are not learning to use their money sensibly and for its intended purpose, then step in and take back control of that money until you are satisfied that they can handle it.

At some point, your teenager will get a job and this is a very good point at which to introduce them to the idea of saving. Get them to put part of their wages into a savings account which they have got to come to regard as funding for major projects, such as 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, items such as a video game system or computer. Once they have made these provisions, you can let spend the remainder of their money in whatever 'crazy' way they choose and, if you are concerned about what they are buying, then open a checking account for them which you can monitor.

Teaching your kids the value of money can be a long and slow process which takes numerous small steps and is not going to be without its difficulties. Your children, and especially your teenagers, will undoubtedly mess up but remember that we learn perhaps our most valuable lessons as a result of the mistakes we make.

Parenting4Dummies.com provides a wide range of tips on parenting and looks in some detail at the problems of parenting a teenager