by Peggy Fisher

Created on: July 19, 2009   Last Updated: July 20, 2009

Everyone needs to be on a budget. If teens get an allowance they need to learn money responsibility. There should be a verbal or written contract between parent and child involving the amount of allowance and interest rates if an advance is requested. The earlier children learn financial responsibility the easier independence will be.

Teenagers may disagree and protest a budget. When they are on their own and have to pay for necessities and frivolities they will be extremely grateful the were raised knowing the value of a dollar.buying more then one can afford is what has put our country in the devastating financial crisis it is in now.

Three ground rules to teach them are: 1. Pay for the basics(gas for their cars,oil changes and insurance). This does not mean that the rest of money is to waste. If a teen blows his money on brand name clothes and computer games, a parent should not bail him out when he needs money for a date or his car needs gas. If a parent feels their teen is responsible enough to drive then then the teen needs to show it by saving his money for his necessities. Being taught that buying a car is all the expense to it is very damaging for their future. This train of thought will be carried over when buying a house and then not having the money for repairs is a road to disaster. Their house will be in foreclosure or they will have to sell at a great financial loss or they may wish to stay in a two hundred thousand dollar dump. 2. Save for something special they want or for certain occasions. 3. Investing show the teen how to put their money into a savings plan and not take it out unless there is an an emergency. It does not have to be anything complicated something simple like a savings account.

Teens learn the most from their parents. If a parent charges everything tees will do the same not realizing the interest interest rate goes on and on until they can be overwhelmed wit debt. When the parents have a lot of things but actually own nothing. The child will think that is the American way, to live in debt. Their materialistic lifestyle will over come their common sense. The rationalization will be, so that makes it alright. Think about it. Does that make sense? Even though most people tell themselves no, that is the way too may live.

Some people never grow up. When they want something they want now. No such thing as saving up for it. Credits cards are readily available and will even issue cards to pets.

A successful person is someone who is happy. A person can not be in debt and truly happy. A patient person assess what is affordable and pays cash, debit card or check for it.

In this fast food, computer age, instant society patience has become nearly extinct. Most people learn patience after many hard knocks and there are no options available.This is rather sad because we need to learn patience as a child of three, and not as an adult of ninety-three.

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