Teen spending tops out at more than $200 billion annually. They certainly don’t need any practice with spending, but they could use some practical advice on saving.
Teens and money just seem to go together. And why not, how else can you get the latest and greatest cell phone, jeans, game or iPod? Let’s not even get started on all the places teens want to go and things they want to do that call for cash!
We know teens are going to spend money, and lots of it. So how do we get them to spend responsibly and save a little money, too?
Help them grasp the whole picture.
No matter what it looks like, teens know that money doesn’t grow on trees. What they may not know is what it really costs to manage a household and raise a family. When teens have good information about how the family financial pie is actually divided they are better able to adopt realistic spending plans as well as more likely to get serious about savings plans.
Help them clarify short and long term financial goals.
Discuss anticipated expenses such as the first car, prom night attire and senior trips. Planning encourages your teen to assume some responsibility for these expenses. You can provide support by helping your teen develop a budget and monthly savings goals.
Help them distinguish between wants and needs.
It is difficult for many adults to resist purchasing things that seem “must have” in the moment. The pressure can be more intense for teens. Create opportunities that help your teen
· Learn to delay gratification
· Develop a sense of worth based on whom s/he is rather than what s/he has.
Need more tips? Visit http://www.fdic.gov/consumers/consumer/news/cnsum06/index.html
