Teach Your Children Well…About Saving Money
“Moooom…I don’t get enough allowance!”
Anyone who is a parent of a teenager has heard these words. No matter what amount they get, it never seems to be enough. However, if you teach your teens about managing their allowance now…it will lead to good spending and saving habits later on, when they are dealing with larger sums of money.
Probably the biggest misconception that many teenagers have is that there is “plenty of time” to learn about saving money…therefore, when allowance time (or if one has a job, payday) comes, there is a strong temptation to spend the money for fun.
As teenagers of course, it should be a time for fun…but at the same time, good habits can be taught for not blowing unnecessary funds for things that can be bought at a much cheaper price. If the latest game is being advertised…teach them that they don’t have to go to the first store they see it advertised. Shop around a bit…they may be pleasantly surprised at how much can be saved just by taking a little extra time to look.
Talk to your teenagers about “impulse buying”. Stores will often place items very close to the entrances and in the checkout lines in hopes the shopper will decide to pick up “just this one thing”. If your child is wanting to go shopping, encourage them to make a list of what they want specifically to get. Let them know that the store is trying to get one over on them by placing these items strategically to lure them into buying it…there’s nothing a teenager likes more than to protest anything they feel is attempting to tell them what to do!
Let your teen open up a savings account of their own with your supervision. Encourage them to put a small percentage each payday or allowance into this account. Let them know that it is theirs…and show them how much can be saved rather than carelessly spending it all. Show them the interest that can be earned by leaving the money alone. You would be surprised how often they will choose to continue leaving the money in the bank.
Of course, the best way to teach your children about saving money is to practice what is preached…so be watchful of your own spending and saving habits. With the family’s encouragement, today’s teenagers will be tomorrow’s financially responsible adults.
By Angela Sangster Copyright SaveMoneySpot, 2010.
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