How to Teach Teens Financial Responsibility

It is important to teach teens financial responsibility.

Even as your child develops into a young teen, he may not quite understand the power of the dollar. If you haven't really taught him that money doesn't grow on trees, you know you'll need to sit him down for a lesson on financial responsibility. He will understand the value of the money he's spending and appreciate things such as food, entertainment and clothing in terms of value.

Instructions

1. Show your teen how much items cost. Use real currency when shopping to emphasis how many dollars becomes not-so many dollars once things are purchased. Get him to estimate how much he thinks you will have left over after a trip to the grocery store.

2. Follow your price estimation exercise with a savings plan. Show him that when he only has 20 dollar bills and wants to purchase a game that costs 45 dollar bills, that he needs to save money to work up to making the purchase. Open up a bank account together and explain the benefits of saving and depositing money in the bank.

3. Give her some responsibilities to earn money to save. From helping to complete housework around the home to getting a job babysitting or washing cars, show her that in order to save money, she needs to make money. Help her create a budget to keep track of her earnings. The hard work will likely begin to show her how much hard work it takes to make enough money for purchases. It may also make her reconsider spending money frivolously on items she really doesn't need.

4. Show him how to make responsible options in what types of things he'd like to purchase. After a while he'll be able to make important decisions on his own as to whether or not there's a bonafide need for the item. Reward him when he's doing a good job or making strides to understand the power of the pocket. This will help teach him that cell phones, video games, food and even toothpaste aren't free and that someone has to work hard to be able to afford it.

5. Teach her how to make the right choices in the work she's willing to do as well. Show her how important it is to work on larger household tasks or to take longer hours while babysitting to earn more money. Reinforce the value of saving and reward her when she's done well.

References

• "Family Circle"; Teach Your Teens Financial Responsibility; Celia Shatzman