Teaching your Teenagers to Handle Money Wisely

Posted on May 10 2013 - 12:47am by Rena

Teaching your Teenagers to Handle Money WiselyTeenagers are known to have expensive needs and wants, but you do not need to break the bank when it comes to letting them have what they want. Here are a few ways to help you to help them and learn how to work with money correctly. Making sure that your kids learn the life skills that they need to be productive adults is very important.

How pocket money should work

Pocket money is always an issue. What parents need to know is that you should make your children understand that money does not come for free. Teenagers should learn that they need to do something in order to get paid pocket money.

As parents, you will need to sit down with them and decide together what chores should be done. They must look after their own bedroom and should also have to do a few other things such as washing the dishes, hanging out the washing and so forth. Older teens can even be given part of the responsibility of some of the shopping.

How much they get as pocket money should be the amount that you feel they deserve, not what you can afford. You also need to think about what they are most likely going to spend their money on when you are deciding on what amount to award them for doing their chores.  Never make the mistake of giving them more than you can afford – they need to understand what your financial situation is and the fact that everyone has to work in order to reap the benefits.

An allowance

If you think about it, an allowance should be for the things that your teens want, not what they need! Parents should provide what their children need and then give them an allowance to spend on the things that they want. Parents should pay for their school clothes, activities and so forth. If you want to teach your teens how to budget with their money, then you could allow them to make these purchases, but be sure to go with them in the beginning to make sure that you can show them how to compare prices and how to stick to their budget correctly.

Weekend jobs

Even though it may not be that easy for a teen to get a part-time job, it should be encouraged. There are places that will hire young people for Saturday or Sunday work. Your teen will feel as though they are important and that they are really contributing to the family unit if they have a part-time job.

Letting them create a CV, even if it is not necessary, is a great way to help them understand the importance of education when looking for a job one day. Show them what your CV looks like and explain to them how having a good one can affect their chances of landing a great job – the job of their dreams!

Banking

Go with them to the bank to open up a savings account in their name. Explain the importance of saving, the concept of credit cards and the interest that goes with having one. Showing them how to write out a cheque will also be very helpful for when they need to do it one day.

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