Nowadays, it seems that there are more and more things for our teenagers to buy every day. There are expensive clothes, mp3 players, video games, designer sports shoes and so much more. If, like the majority of us, you do not have pots of money, then it is clearly difficult to give your teenagers everything they want and that is why it is important for us to help them understand the value of money.
It is vitally important to start teaching your children about money from an early age. Beginning at about the age 10 you should give them a few dollars every week that they can spend in whatever way they want. This weekly allowance should not 'free' but ought to be dependent on their doing some household chores. You should however work with your children and allow them to what chores they want to do rather than assigning them specific jobs. Additionally, 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 simply go on buying them the things they want. They must, and soon will, discover that if they spend all of their money as soon as they receive it they will not be able to get some of the more costly things they want.
Additionally, it is extremely important for you children to grasp the ins and outs of budgeting at an early age and discover exactly how much things cost. Take them to the shops when you go shopping, have them help you with working out the household budget and allow them to look over your shoulder when it is time to pay the bills. It will not take them long to get a sense of just how costly everyday living can be.
As your children get older, and unquestionably by the time they have reached the age of 13 or 14, slowly raise both their level of responsibility and their weekly allowance. For instance, include their lunch money in their weekly allowance and make them responsible for buying their own lunch. As they accept greater responsible, teach them to create a budget for bigger items like clothes or an mp3 player, and then force them to stick to that budget. Again, you will discover that they will quickly learn that if they want to purchase expensive items, then they have to make sacrifices.
Remember also that you can always backtrack. If you discover that your children are not learning how to to use their money sensibly and for its intended purpose, then do not be afraid to step in and take back control of that money until you are happy that they are able to handle it.
At some point, your teenager will get a job and this is one of the best points at which to introduce them to the idea of saving. Get them to put some of their wages into a savings account which they have to come to see as funding for major projects, like their college education or other significant pursuits. In addition, get them into the habit of putting a small amount of their wages to one side to pay for less important, but nonetheless expensive, items like a video game system or computer. Having made these provisions, you can then allow them to spend the remainder of their money in whatever 'crazy' manner they choose and, if you are worried about where they are spending their money, then open up a checking account for them that you can monitor.
Teaching your children about money can be a lengthy and slow process that takes numerous small steps and will not be without its difficulties. Your kids, and particularly your teenagers, will undoubtedly mess up but remember that we learn perhaps our most valuable lessons as a result of the mistakes we make.
