D' Finance Bench

The Right Place To Sit At For Financial Advises

Starting Young: Teaching Teens to Save Money

In the past few 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 of it for a big purchase, or for their college education.

Kids these days are becoming more and more aware of their family’s source of income and financial status. They apply these money-spending principles when they venture out on their own.

Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely.

Here are some ways on how you, as a parent, can teach your teens to save those hard-earned bucks:

  1. Lead by example.With your lifestyle, the children will see how you spend your money. If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep.
  2. Help your teens get a bank account.Establishing a bank account under their name would give them an instant financial responsibility.Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough.Their savings could go to their college tuition, or a big purchase like a car.Additionally, it gives them a sense of accomplishment once they have saved up, with something concrete to show for it.You may check out the special benefits that banks offer for teens who open their accounts at such an early age.
  3. Construct a “spending plan”. Once they hear the word ‘budget’, teens tend to cringe at the mere thought of having to restrict the spending of their money.Instead, you and your teen son or daughter could build a “spending plan”. This would get them excited, and think of ways on how they can wisely spend their savings.Also, have them list down their earnings versus their expenses.Let them know the difference between the items that they need and the luxury items that they want, which they can actually do without.
  4. Make a “mock” investment in the stock market. Make them aware of the options that they have financially.Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies who manufactures products that they like.Monitor the stocks together and this would give them another option of investing their money in the future.

September 23, 2012 - Posted by | Budgeting, Savings | , , , , , , , , ,

8 Comments »

  1. You have some brilliant ideas here. I’m actaully struggling to get my 13 year olds son to actually commit to working to male the money. I’ve even offered to pay him to review books he enjoys for my blog. Its all talk and excitement but no actions. Any advise?

    Comment by Wendy | September 24, 2012 | Reply

    • 13 years old is seem to be the stage where he doesn’t have any idea what budgeting is really all about. My suggestion is, find something he is interested to do and from there, craft ideas on how he can make money from it.

      Comment by The Finance Bench | September 26, 2012 | Reply

      • Thanks for getting back to me. I’ll certainly do that.

        Comment by Wendy | September 29, 2012

      • Welcome 🙂

        Comment by The Finance Bench | September 29, 2012

  2. Reblogged this on This Jade Villa and commented:
    Even though I’m far from great at it, I’m really trying to teach my son to save earlier. I’m thinking right now that perhaps I’m not the only parent in this situation. My son is 13 years old and I think it’s the right time to have this conversation. Perhaps even too late.

    Comment by Wendy | September 24, 2012 | Reply

  3. Sounds like good advise, I also set up an automatic savings plan where every month a set amount is automatically deducted from my main bank account and goes straight into my savings account, which with a lot of will power I have managed to leave alone. You would be amazed at how much you can save and not even notice it, this way, if any emergencies come up, you have the money to cover it if you have to.

    Comment by squnches | September 24, 2012 | Reply

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    Pingback by How To Modify The Terms On My Loan? « D' Finance Bench | September 25, 2012 | Reply

  5. […] can follow a budget, think of it as a spending plan instead. To get your finances on track and start saving, you will need to spend less than you make. Write down where your money is coming from and on what […]

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