help, i know i've waited too long!!! teens and bank accounts
Posted 07 April 2011 - 10:13 AM
Posted 12 April 2011 - 07:52 PM
That is an awesome question! I already have a 19 year old and it's been tough dealing finances with him. I also have two more teenagers coming up the high school ladder and I don't want to wait much more to teach them how to deal with money everyday. They don't have paying jobs but we do give an allowance. Where does one start? Thank you!
Posted 25 April 2011 - 05:12 PM
You start with the allowance. Help them determine their income (the allowance) and their expenses. Help them make a budget and allocate where every dollar is going to go with necessities being taken care of first. Next get them a checking account and actually teach them how to make a deposit and write a check. You have to teach them how to put all the info in the register as well.
They are going to depend on you to teach this stuff. They don't get any personal finance lessons at school any more and if they do, it may be from a broke teacher so what good is that? I think the biggest thing is teaching them what neccesities are and to save money. Shoot, even my 6 year old knows that she has to have $2 a month to pay for her girl scouts dues/patch without me mentioning it. That is her necessity and only bill right now and she knows how to plan for it.
The other thing about kids getting ready to run off to college is that there needs to be a good sense of character and judgement. It will be easy for them to break their budget and splurge on pizza with the room mates when they don't have money to do it. That's when they're going to get off track right from the start, get persuaded to get into credit card debt for meals out all the while mom and dad are writing a check to the school for three squares a day in the student cafeteria.
Best of luck. I can't wait until my challenges with teaching my daughter more about money come in the near future. Yikes!