Teen Spending Habits
As your children grow up, one of the most important things they can learn is good spending habits. Typically children have no concept of money because they live under your roof, eat your food, and usually do not contribute towards the household bills. At which point when they get out on their own, they often have trouble managing money - it is easy to see why. However, it can be relatively easy to start your children on the road to good spending habits with a few simple suggestions:
1. When they want something, even if you buy it for them, make them comparison shop. Typically our society wants thinks now and has little patience when it comes to waiting. Make your child check at least 3 different stores before making the purchase.
2. An allowance can be a great teacher if used properly. Some teens have no problem doing things around the house or yard for money, but often times they take that money and immediately spend it. That can translate into good work habits, but poor spending habits. Try and work out an agreement with your children that they save part of their allowance. Even if you have to pay them a little more, this does teach a valuable lesson.
3. An old fashioned check book can be a good way to teach effective spending. Help your teen open a checking account and make them get a checkbook. Do this before allowing them to use a debit card. Sit with them and show them how to balance a checkbook and emphasize the importance of writing things down. Typically plastic cards (debit or credit) promote spending that is more difficult to track and can easily get out of hand. After a period of time then introduce the debit card.
4. Pay your teen in prepaid cards. With a prepaid card as opposed to debit or credit cards, you cannot go over drawn. This can help teach your children to monitor spending because the card has a finite supply of cash.
5. If you do open a checking account and get a debit account, refuse the over draft protection. Banks want you to have this feature because if you go over drawn they will charge you a fee that is usually not cheap (over $30). Your teen needs to understand it is not ok to spend more than they have.
As your children grow up, one of the most important things they can learn is good spending habits. Typically children have no concept of money because they live under your roof, eat your food, and usually do not contribute towards the household bills. At which point when they get out on their own, they often have trouble managing money - it is easy to see why. However, it can be relatively easy to start your children on the road to good spending habits with a few simple suggestions:
1. When they want something, even if you buy it for them, make them comparison shop. Typically our society wants thinks now and has little patience when it comes to waiting. Make your child check at least 3 different stores before making the purchase.
2. An allowance can be a great teacher if used properly. Some teens have no problem doing things around the house or yard for money, but often times they take that money and immediately spend it. That can translate into good work habits, but poor spending habits. Try and work out an agreement with your children that they save part of their allowance. Even if you have to pay them a little more, this does teach a valuable lesson.
3. An old fashioned check book can be a good way to teach effective spending. Help your teen open a checking account and make them get a checkbook. Do this before allowing them to use a debit card. Sit with them and show them how to balance a checkbook and emphasize the importance of writing things down. Typically plastic cards (debit or credit) promote spending that is more difficult to track and can easily get out of hand. After a period of time then introduce the debit card.
4. Pay your teen in prepaid cards. With a prepaid card as opposed to debit or credit cards, you cannot go over drawn. This can help teach your children to monitor spending because the card has a finite supply of cash.
5. If you do open a checking account and get a debit account, refuse the over draft protection. Banks want you to have this feature because if you go over drawn they will charge you a fee that is usually not cheap (over $30). Your teen needs to understand it is not ok to spend more than they have.