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“Start young: teach teenagers how to save money”

Parents complain mainly that teens do not listen to them. The opposite is true when it comes to advice on ‘monetary issues’. Teenagers actually welcome their parents’ views on their finances.

In recent years, teenagers have earned billions of dollars with part-time and summer jobs.

Some have spent most of what they earned, while others saved most or even all for a large purchase or for their college education.

Children these days are increasingly aware of the source of income and the financial status of their family. They apply these principles of spending money when they venture on their own.

Therefore, it becomes more responsibility for parents to start “training” their teenagers to use their money wisely.

Here are some ways on how you, as a parent, can teach your teen children how to save those hard earned dollars:

1. Lead by example.

With their lifestyle, children will see how they spend their money.

If they see you assigning a certain amount for a specific need in the home, they will eventually do the same when they get to earn their own support.

2. Help your children get a bank account.

Establishing a bank account in your name would give them instant financial responsibility.

Sit down and explain how to manage your own account, and the “rewards” you get once you save enough.

Your savings could go to college tuition, or a large purchase like a car.

In addition, it gives them a sense of accomplishment once they have saved, with something concrete to show.

You can check the special benefits that banks offer for teenagers who open their accounts at such an early age.

3. Build a “spending plan”.

Once they hear the word ‘budget’, teens tend to shrink at the mere thought of having to restrict spending on their money.

Instead, you and your teenage son or daughter could build a “spending plan.” This would excite them and think of ways they can spend their savings wisely.

Also, have them list their earnings against their expenses.

Let them know the difference between the items they need and the luxury items they want, what they can really do without.

4. Make a “simulated” investment in the stock market.

Let them know the options they have financially.

Introduce them informally to the commercial part of their journals and ask them to make “simulated” investments for the companies that manufacture the products they like.

Monitor stocks and this would give them another option to invest their money in the future.

ما هى VAPULUS ؟


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