Teenagers learn how to use smart phones, cellular phones and computer tablets. Some teenagers can handle a 2,000 pound car in heavy traffic! Likewise, students should be able to learn the basic concepts of money management. If you teach you teens how to manage money today, they will have less financial problems in the future.
In order to instill saving habits in youths, parents must be able to learn and understand how youths spend money. Parents and caregivers can instill saving habits in teenagers by teaching them a few practical money saving tips.
Start saving money early
Instill money saving habits in teenagers by teaching them to save money at an early age. Pay your teenagers an allowance for doing chores at home when they turn thirteen. Tell the teenagers that a percentage of the allowance has go into their saving account at the bank. Let the teenagers know that a portion of the funds should be used for his daily expenses.
Hand over financial responsibility
Hand over some of the financial responsibilities to your teenagers. Give your teenage son or daughter the opportunity to pay their own cell phone bill or Internet service bill. Allow the teenagers to pay for their own school clothes. Hand over an automatic teller machine card to your teen and let them know how much money is on the card. Do not give your teenager a credit card.
Explain the household budget
Explain to your teens that the family has a household budget. Be very specific and show them how much the food, insurance, light, water, rent or mortgage, car payment and other bills cost for the month. This is how you teach teens to track their personal expenses. Simply put, let them know that once all the bills are paid, there is a surplus that can be used for saving or investing.
Teach teenagers to budget their money
Make sure you teach your teenagers how to manage and budget their money. Tell them that they have to add up all their bills for the month. Subtract the cost of all the bills from their monthly income. A negative number means they have to make adjustments and they are in the red. A positive number means that they are living within their means and budget.
Develop rules for spending
Teenagers like to spend money so it is imperative that parents develop a support system for expenses. Inform your teenagers that some expenses have to be paid from their allowance or pay check. This is important because it helps teens make decisions about the things they want and the things they need to buy. Although the teenager is making the spending decision, the parent is monitoring that decision.
Finally, there are many ways instill saving habits in teenagers. However, sometimes you have to develop methods for saving based on the teenagers spending habits. Do not give up on your teenagers if they are having financial problems. Parents have to step in and have a positive impact on how teenagers spend their money. It is better have a $100 problem than to have a $1,000 problem. Therefore, it is extremely important that parents teach their teenagers how to save money.