Friday, July 31, 2009

Teens Spending Money

Teenagers are big spenders. They see something they want, they have to have it. If they want a new computer, there's no stopping them from getting it. When they want to buy a car, they might beg you and ask you for money, or not stop working until they have the money saved. The problem with this is that it makes it harder for them to understand the difference between a need and a want.

If they get everything they want when they are younger, they might think it's a need when they are older. Or worse, they might not think of the important expenses such as bills as any more important then getting a brand new car. They need to understand what is important. You can't just keep giving your kids money for everything they want or need. They might never stop asking you for money if you continue to keep giving it to them.

Teach your kids and teens how to manage their money

Teaching your kids how to manage their money is one of the best gifts you can give your kids. It can mean the difference between living a sound life without worrying about money and living paycheck to paycheck with a mountain of debt. There are so many people today who are tens of thousands of dollars in debt or more. These people are in constant worry about how they will survive. Don't let your kids be one of them.

Money management is much more beneficial to them than simply deciding they just need to make a lot of money. Even people making six figures a year are in debt. It's our spending habits that get us into trouble, not the amount of money we make. Even if they can live paycheck to paycheck without going into debt and buying everything they want because of their high paychecks, they won't be saving and investing for retirement which could mean working for the rest of their lives.

Teach them to plan

If you don't have the money, you can't buy something. When your teen get's his license, he'll want a car. Instead of just buying it for him, have him save for it. You can even decide to match what he'll save. In order for him to be able to afford this car, he'll need to plan out his purchase. It's surprising how much a plan can really help you.

For big expenses and monthly expenses, teach your kids how to budget so that they can avoid taking out credit cards and building debt. If you don't have a budget yourself, make one so that you can be a good example and show your kids how to do it.

Teach them to track their expenses

With the Visa Buxx Card, your teens can track what they spend their money on. It's important that they know how they spend their money so that they can adjust it when they are planning. For example, if they need to save an extra $20 per month to save for a new computer, they might notice that they spend that much on snacks that they don't really need to be buying.

Teen Spending is hard to get a hold of, but when you teach them right now, they can get off to a good start.

About the Author: Samantha is currently attending college for a degree in accounting and likes to teach others how to stay financially sane in a world where management skills are lacking. To learn more about money management visit her website


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