2 of 19

Write now Article Tools

It is a well known fact that teens have difficulty in handling their finances successfully. But there are ways for that problem to be solved:

1. Parents need to give a specific amount of allowance to their teenage kids every week and follow through with it. It should be made perfectly clear to their teenage kids that this specific amount will have to last for the entire week, therefore if they spend it before the week ends, they will be left with nothing. Also, there should be no misconception about the fact that the specific amount will not be increased in any way, shape or form.

2. Parents need to set the good example themselves, for their teenage kids to follow. If teenagers see their parents spending way too much money on trivial things, it is only natural to repeat the same behavior themselves. It makes no sense for parents to expect financial discipline from their kids when they are incapable of following their own advice. The ''do as i say, not as i do'' mentality only makes them look like hypocrites.

3.Teenagers need to learn how money is earned, therefore it is a good idea for parents to establish a rule, according to which teenagers will have to perform certain tasks to earn their money.Household chores, getting better grades, are some nice opportunities for teenagers to earn some money. If their allowance is not somehow connected to something they do, they will grow believing that money is something they are entitled to, no matter what. But if they start earning money, having accomplished something, they will actually feel something more than joy. They will feel satisfaction and pride. Their self esteem will be boosted a great deal. They will feel useful and valuable.

4. Another wise idea is for parents to help their kids get a summer job. While working and earning their own money, teenagers will slowly but steadily begin to understand in depth the value of money. Getting allowance on a weekly basis, is very different from getting their own paycheck on a weekly basis. Knowing that they have to work hard for someone other than their parents, (who unlike their parents can fire them at any given moment if they don't do their job well), in order to earn money, will put things in a whole new perspective. They will now think twice before spending recklessly the money they earned by working hard.

5. Parents need to explain to their teenage kids the importance of saving money. Parents can open a savings account, and let their teenage kids

• 1
• 2
• next page >>

Add your voice

Know something about How to make your teens change their spending habits?
We want to hear your view. Write now!