Teens have more money to spend than previous generations and develop spending patterns at a younger age. Teens who learn good money management skills are more likely to become adults who can make sound financial decisions, avoid excessive debt, and manage income and expenses to reach their financial goals.

Teens' attitudes about money are influenced by their parents, the media, their peers, and their own successes and failures in spending money. You as a parent have first dibs on their circle of influence. The media will bring them to you. It is just a measure of your will to buy the product or service for them or tell them they need to pay for it.

Immediately the first response is, "I don't have any money!" or some other variation depending on your relationship with them. This leaves the floor wide open for you as the parent. You may start by explaining why you don't have any money to buy for them because of your own mistakes or explain that you have not planned to buy anything extra this month.

If the desire is still there and your teen really wants whatever it is then tell them what you do to save, pay off loans, invest or make the house (apartment) rent each month. Then discuss an allowance or if your teen is rebellious encourage the concept of earning their way. This can be a great motivator for many issues already present in your teenagers life.

Some examples for earning their way are;
- Earn credit for grades. At the end of the month pay them based on their grades.
- Extra chores for cash can be a fantastic way to ease your burden and teach your teen that work can be beneficial. Discuss how much is to be paid before he or she performs the task.
- Have them help you shop for groceries by clipping coupons. Then go shopping and give them the money that you saved.

If the above does not fit your parenting style then go the route of providing an allowance. The purpose of an allowance is to teach teens how to manage their own money based on their needs, wants, and goals. An allowance should be a specific amount of money, decided by both the child and parent and given at a specific time, such as weekly or monthly.

Explain to your teen what you do when you get paid. For example, tell them what you do each time you receive money. How you divide it up into savings, checking, investments, allotments or how much you set aside for large purchases in the future, like their college education!

As a parent, you can help your teens see how money helps them meet their needs, wants, and goals by writing down a spending plan similar to yours. A spending plan can encourage teens to be careful money managers. Your teen should write down reasons why they are going to spend money and post it on the bathroom mirror. This will foster repetitive behavior and make a habit of good money management and goal setting.

Learn more about this author, Jack Burton.
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