Teens and Financial Responsibility: Should Your Teen have a Summer Job?

As summer is approaching many parents question whether their teen should get a job or go to summer camp.  It is a personal decision and a depends on the teen and the family.

Teaching your teen how to be responsible with money is very important. So many teens enter adult hood unaware of the workings behind their finances, which leads them into a lot of financial hardships down the road.

Here are a five ways to start teaching your teen to be financially responsible:

1)  Get a Job:Your child’s education should be first priority and their job second, so a job that requires a minimal schedule is best. Look at lifeguarding, restaurants, retail or babysitting. Even if the job doesn’t have epic responsibilities it will teach them about paychecks, pay periods, taxes and what to do once you get that pay check. Be sure to check your state’s legal working age; some differ from others anywhere from 13 to 16 years old.

2)  Allowance: Your teen may be too active with school and extra circular activities to find a part time job, so make them earn an allowance. Chores around the home, dog walking or watching their younger sibling is a good way for them to earn their money. Pay them what you would normally pay someone to do that job. Just because they are your child doesn’t mean you should pay them less.

3) Save: Teaching your teen to save is so important and probably the most important habit they carry on into their futures. The money they earn, whether it is allowance or from a job, have them save a portion, Teach them the reasons you save and why it is so imperative for their futures.

4)  Pay for own things: Going to the movies, concerts or buying a new pair of shoes that they ‘must have’ should come out of their own pocket. As parent you are not entitled to buy them new video games or supply cash for pedicures. Teach them that that these things are just extras and they will have to pay for it themselves. Have them pay for their own gas too will help them see how quickly money can disappear.

5)  Give them a Credit Card: This may be a stretch for some parents and could seem an extreme. But sitting down with your child and going over how credit cards work can help them when they run off to college one day. College students are easy targets for credit cards because they do not understand how to use them. Start early and let them use the family credit card and monitor every spending and show them how quickly things can add up.

As in any lesson you are trying to teach your teen, don’t beat a dead horse. Avoid the nagging and pestering and let them make the mistakes. Obviously you need to monitor them from a distance but be there to kindly guide them in the right direction. Follow some of these tips and you will see a little money saver in no time!
Special contributor: Jenny Ellis is a freelance writer, and a regular contributor for aupair care. She welcomes your comments at: ellisjenny728 @ gmail.com.

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Teens and Money: Financial Literacy

Holidays are here, people are spending money.


What role model are you setting for your kids?


Approximately fifteen hundred high school seniors were recently asked basic facts about personal finance, and the great majority were stumped for answers. The results were not promising for our children’s future:

REALITY CHECK: 95% of teens surveyed scored below a C in financial literacy.

Wonder why? Another survey finds a key reason for teens’ low financial scores:

REALITY CHECK: 80% of all college freshman admit to never having a conversation with their parents about managing their money. What’s more, almost one in four of these same teens say it’s just fine to blow as much as $500 without checking in with their parents. 

The findings are hardly a proud parenting moment, but I also hope you are starting to get my drift.

The truth is too many kids are flunking financial literacy and one big reason may be that we’ve failed to teach our children a few essential “money smart lessons.”
If you’re concerned about your kids’ future spending habits, then start your money talk now and there’s no better time than these next few weeks. Newspapers will be filled with coupons and penny savers. Television ads for holidays “deals” will air non-stop. Teen magazines will feature those supposed holiday “in” gadgets and “must have” items. Those are also perfect opportunities to let your kids know that money doesn’t come easy. It’s also the time to review that  you do have clear expectations and limits about your family’s spending during the holidays. Here are a few ways to weave in those crucial money chats over the coming weeks with your kids.
Kids look to us as the example to copy so how are you doing in modeling money smarts to your children? Are your kids seeing you cut out those coupons? Waiting for the right price?
Displaying smart spending habits? Prioritizing your must-haves? Beware that your children learn spending and saving habits from you. How are you doing?

• Monitor TV Consumption:  Television is the one of the biggest culprits in fueling kids’ spending urges, and commercials are relentless in trying to get kids to buy, buy, buy. Research also shows that media impacts our children’s money attitudes and increases materialism. During the next few weeks those retailers will be pushing products and urging your kids to spend. So beware of those advertisements! Do take time to explain to your kids the real intention of those advertisers.
• Use Real-Life Examples:  Take your child shopping with you. I dare ya! But when–or if–you do, show him how you compare prices. Explain to her how you look for bargains. Use those outings as teaching moments that do instill good shopping habits.
• Teach Bargain Hunting:  If your kids are purchasing gifts for siblings (or even you!) get them involved inchecking out those penny saver ads. Have them clip out coupons. Tune your kids into the bargains at those dollar stores. Hit the outlet malls, and don’t overlook thrift stores and even garage sales. And tell them to watch for sales! Grandma will never know if her present was ten dollars less because Johnny waited to buy until sales day.
• Cut Impulsive Shopping:  Set a household rule that your child must write down any pricier intended purchase, and then postpone buying it for at least twenty-four hours. It’s a great way to teach kids to delay gratification and to “Think” before spending. A younger kid can draw it  on her “wish list.”The wait time could vary from an hour or day to a week or month depending on the  child’s age and maturity.  If your kid loses interest before the time is up, even she will agree that she didn’t really want that item after all.
• Teach “Wants vs. Needs”:  This is the “Gotta Have It NOW Generation” so a big step in helping today’s kids learn to be smart spenders is teaching the difference between “want it…” vs. “need it.” The trick is to get your kids to assess what they already have that is still in good shape and can be recycled, what’s missing and then what’s really needed is on the “need” list and holiday request list. Now your kids can create a holiday wish list based on real needs not wants to help prioritize spending.
• Do One Store Shopping to Boost Consumer Skills: Your kids planning to do their own holiday shopping? If so, this is a great way to help teach them consumer skills. Consider choosing just one store that has the best bargains to take the kids this year (like Wall Mart, Target, K-Mart) for their gift-buying. By announcing, “We’re shopping only at this store,” the kids are forced to look for the best bargains in one place and you won’t find yourself driving to multiple stores (and bringing back multiple items). This is also the time for them to bring their coupons and shopping lists. Make sure you also have them compare prices of items so they understand value.
• Consider After-Holidays Gift Buying:  Seriously! I know more families who realize the best deals are December 26. Those parents set a new rule: “You receive a few items under the tree but wait for that pricier item the day after the holidays.” The kids learn to appreciate the value of a good deal, the parents are grateful to save a ton of money, and the whole family enjoys that day after shopping outing for everyone’s “one special–and better-priced-gift.”

Special contributor:  Parenting Expert, Dr. Michele Borba


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Michele Borba is the author of over 25 parenting books including The Big Book of Parenting Solutions.

Sue Scheff: Money Talk with Your Teens

Part 6 of my sneak peek series inside Dr. Michele Borba's latest book, BIG BOOK of Parenting Solutions, brings up a topic that is not only timely with today's difficult economy, it is critical parents understand the importance of how to talk to your kids about money and finances.

"Are you talking to your kids about money? If not, you'd better!" - Michele Borba

Approximately fifteen hundred high school seniors were asked basic facts about personal finance, and the great majority were stumped by those questions: 95 percent scored below a C. So it should be no surprise that another survey found that 80 percent of all college freshman admitted to never having a conversation with their parents about managing their money. What's more, almost one in four of these teens say it's just fine to blow as much as $500 without checking in with Mom and Pop. If you're concerned about your kids' future spending habits, than start the "money talk" now. Let them know that money doesn't come easy and that you do have clear expectations and limits about their spending (and then tell them what they are).


Step 1. Early Intervention

Identify your parenting style. Here is a quick quiz to see how you doing to help your kids learn about money management. Check the statements that describe your typical family: (page 553-554 will offer you descriptions you can review).
Be a good role model. Kids always look to us as the example to copy. (continued on page 554)
Monitor TV Consumption. Television is the one of the biggest culprits in fueling kids' spending urges, and commercials are relentless in trying to get kids to buy, buy, buy. (continued on page 554)
Explain how money works. Start money lessons when your kids are young. (continued on page 554)
Use real-life examples. Take your child to work. Show your daughter how you balance your checkbook. (continued on page 554)

Step 2. Rapid Response (read pages 555-556 for this wise advice)

Step 3. Develop Habits for Change (read pages 557-558 and start raising a money-smart child)

ONE SIMPLE SOLUTION

Cut Impulsive Shopping by Teaching Kids to "Think Before Spending"

Set a household rule that your child must write down any pricier intended purchase and postpone buying it for at least twenty-four hours. A younger kid can draw it on her "wish list". The wait time could vary from an hour or day to a week or month depending on the child's age and maturity. If she loses interest before the time is up, even she will agree that she didn't really want that item after all.

WHAT TO EXPECT BY STAGES AND AGES

Preschooler (page 558)
School Age (page 558)
Tween (page 558)

Next sneak peek: Could your child have Oppositional Defiant Disorder (ODD)? - page 78

For those that don't have time to read, this is the perfect book for you since it is not the type of book you sit down to read. As parenting questions come up, you can go straight to the index and find the page number. Immediately you will see the pages divided by boxes, quick tips and advice and easy to read and understand resources. Did I mention she also gives you proven research and statistics?

Order The BIG BOOK of Parenting Solutions today! Whether it is for yourself or as a gift, you won't be disappointed.

Previous sneak peeks: (1) Gratitude Recipes: Big Book of Parenting Solutions, (2) Parenting 101: Ungrateful teens and children (3) Seven Deadly Parenting Styles, (4) Sex Talk with your Children, (5) Gifted children, (6) Money and your kids, (7) Oppositional Defiant Disorder

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Reminder: Holiday Safety Tips