How to Teach Your Teen to Manage Money.
They say the apple doesn’t fall far from thetree, so make sure you’re not enabling your kids’ irresponsibility by doling out the cash. If they don’t learn to manage money, it may cost them their future. You will need DisciplineAllowance Planning skills Budget Savings account Prepaid debit card and sound investment strategies(optional). Step 1. Model the behavior you desire. Get your house in order and disciplineyourself before you curb them, so that your advice and counsel has credibility. Step 2.
Hi. I’m Eddie Ross, East Coast Producer and Editor for Better Homes and Gardens Magazine. Today we are si… Say no to your teen. Many parents lack the gumption – don’t be one of them. Step3. Help control your teen’s spending by educating them about wants and needs. Allowing them to have a credit card only temporarily forestalls the conversation about responsibility.
Step4. Use allowance as a tool through which they can experiment with their own money, allowingthem to suffer the consequences when money is wasted. The results will be priceless. Many financial companies offer services for monitoring your teen’s credit card account. Step 5. Teach them to plan, which may include getting a part-time job to purchase desiredobjects. Step 6.
Help them develop a budget, teaching them to acknowledge each expenditureand to organize their basic material desires. Step 7. Set goals for a savings account aimed 80 Christmas Decorating Ideas for a Joyful Holiday Home Part 3 at future needs like college, trips, and marriage. Agree to reinforce this with small matchingcontributions on your part. Teach sound investment strategies to your teen, or have someone who knows what they’re doing help. Step 8. Allow the teen to have a prepaid debit card insteadof a credit card.
There is no government bailout authority that will reinforce poor money managementfor your family. Did you know By 2008, over91 million U. S. households had at least onecredit card.