27 Jul
2010

Teenagers are at an interesting time in their lives, financially speaking. Most have few if no expenses but many have a job or some allowance that gives them disposable income. Most teens also have more freedom than children, so they have more leeway in spending their cash. Freedom and disposable income mean that teens may be picking up spending habits that stay for a lifetime. The teen years are a good time to teach your kids about money. There are several ways you can teach your teens about money:

1) Develop a budget. Help your teen budget for things such as a new car or a new wardrobe.

2) Get your teen involved with financial planning by using apps and online tools. Teens are more likely to see money as cool if they can use their cell phone or computer to keep track. These tools can help your teen track spending, compare prices, and track savings.

3) Consider using a controlled method, such as prepaid debit cards, to teach your teen about money. If your teen is struggling, prepaid debit cards allow your teen to stick to a budget – once the card runs out, your teen has to stop spending. As well, prepaid debit cards leave a paper trail so that you can review spending habits and shopping decisions at the end of the month.