Tips on Teaching Teens to Save Money

It’s not possible to save 100% of your money. You have to live. But it helps to have something for the rainy day. Parents should teach their teenage children this habit early on. The best way for a teenager to develop a healthy saving habit is to regularly do this.

1. Save before spending. The minute a teenager gets money, it could be from allowance of a part-time job, teach him to take out a portion of what would go to his savings before entirely spending it on what he wants.

2. Negotiate with the parents. This may work for the parent, maybe not, but you might as well try. Encourage your children to do this good saving habit and make a deal like for every $25 dollars they save, you’ll add $25.

3. Teach them self-discipline. Always ask them whether the thing they are eyeing is something they want or is something they really need. The minute they have mastered this lifestyle, it will be easier for them to save. At the same time, you will be assured that they are spending their money wisely too.

4. Every change counts. It may just be a dollar. It may be 25 cents but remind your children that four 25 cents equate to a dollar and ten dollar bills equate to ten dollars. Put all their change in a jar and try not to touch it. The minute they need money, then they can reach in to it and be surprise on how much it actually amounts to.

5. Deposit the money in the bank. If they haven’t tried going to the bank yet, teach them about banking transactions. It may mean taking an extra step but it’s a step worth investing in.

Starting to teach them really young about financial management will get rid much of the learning curve. It’s a part of parental responsibility that is often overlooked. Of course, it’s imperative that parents become good example if they want their kids to learn how to be financially responsible. Show how it’s done - be frugal yourself.

[image from mediarich]

Tags: teen, finances, budget, bank