The Best Way To Teach A Teenager The Value Of Money - By: Don Saunders

Nowadays, it seems that there are an increasing number of things for our teenagers to buy every day. There are designer sports shoes, video games, mp3 players, expensive clothes and much more. If, like most of us, you have not been blessed with wealth, then it is clearly hard to give your teenagers everything they want and, as a result, it is important for us to help them understand the value of money.

It is vitally important to begin to teach your children about money from a young age. Beginning at about age 10 you should give them a few dollars every week that they can spend in whatever way they wish. This weekly allowance should not 'free' but ought to be dependent on their completing some household chores. You must however work with them and allow them to what chores they wish to do instead of giving them particular tasks. In addition, it is important that you do not set limits on what they can spend their money on and also that, having given them allowance, you do not then simply continue buying them things they want. They must, and soon will, discover that if they spend all their allowance as soon as they get it they will not be able to get some of the more costly items they want.

In addition, it is vitally important for you children to grasp the ins and outs of budgeting at a young age and discover exactly how much things cost. Take them to the shops when you go out shopping, have them help you with working out the household budget and allow them to watch you when it is time to pay the bills. It will not take them long to get a feeling for exactly how costly everyday living can be.

As your children get older, and without doubt by the time they get to the age of 13 or 14, slowly raise both their level of responsibility and their weekly allowance. For example, include their lunch money in their weekly allowance and make them responsible for buying their own lunch. As they learn to accept greater responsible, teach them to prepare a budget for bigger items such as an mp3 player or clothes, and then force them to stick to that budget. Once more, you will find that they will quickly learn that if they wish to buy expensive items, then they need to make sacrifices.

Remember also that you can always backtrack. If you find that your children are not learning how to to use money sensibly and for its intended purpose, then do not be afraid to step in and take control of that money again until you are satisfied that they can handle it.

Sooner or later, your teenager will decide to get a job and this is a very good point at which to introduce them to the concept of saving. Teach them to put a proportion of their wages into a savings account which they have to come to regard as funding for major projects, such as their college education or other significant pursuits. Additionally, get them into the habit of putting a small amount of their wages on one side to pay for less important, but still expensive, things such as a video game system or computer. Once they have made these provisions, you should then allow them to spend the rest of their money in whatever 'crazy' manner they choose and, if you are concerned about where they are spending their money, then open a checking account for them that you can monitor.

Teaching your children about money can be a long and slow process that takes a number of small steps and will not be without its problems. Your children, and especially your teenagers, will mess up but do not forget that we learn some of our most valuable lessons from the mistakes we make.

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