Teaching A Teenager The Real Value Of Money

There are not too many that can create difficulties more quickly in families than money and teaching your teenagers how to handle money is very important.

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

It is critically important to begin teaching your kids about money at an early age. Starting at around age 10 you should give them a few dollars every week which they can spend in whatever way they wish. This allowance should not 'free' but has to be dependent on their undertaking some household chores. You should however work with your children and allow them to what chores they wish to do rather than assigning them specific jobs. Additionally, it is important that you do not set limits on what they can spend their allowance on and also that, once they are receiving an, you do not then simply go on buying them things they want. They have to, and soon will, find out that if they spend all their allowance the moment 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 learn the ins and outs of budgeting at an early age and discover just how much things cost. Take them to the shops when you go shopping, have them help you with 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 feeling for just how costly day to day living can be.

As your kids get older, and without doubt by the time they get to the age of about 13 or 14, slowly increase both their level of responsibility and their allowance. For instance, add their lunch money to their allowance and give them the responsibility of paying for their own lunch. As they accept greater responsible, teach them to prepare a budget for bigger items such as clothes or an mp3 player, and make them stick to this budget. Once again, you will discover that they will rapidly learn that if they wish to purchase expensive items, they need to make sacrifices elsewhere.

Do not forget also that you can backtrack. If you discover that your kids 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 control of that money again until you are happy that they can handle it.

A some stage, your teenager will get a job and this is an excellent time at which to introduce them to the idea of saving. Teach them to put a percentage of their wages into a savings account which they should come to see as a resource for funding major projects, such as their college education or other significant pursuits. In addition, get them to put a small amount of their wages on one side to fund less important, but still expensive, things such as a video game system or computer. Having made these provisions, you can allow them to spend the remainder of their wages in whatever 'crazy' manner they choose and, if you are concerned about where they are spending their money, then open up a checking account for them which you can monitor.

Teaching your kids the value of money can be a lengthy and slow process which takes numerous small steps and is not going to be without its problems. Your kids, and in particular your teenagers, will mess up but remember that we learn some of our most valuable lessons from the mistakes that we make.

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