[md7mdee]

I would love to hear your ideas on how you've taught your teens about money management...something my parents never did...and cost me thousands of dollars later in life. I'm thinking of abandoning all my own credit cards and going cash only and back to basics in order to set an example. Any other ideas?

[MissyChrissy]

My girls have to earn their allowance. If they want something, they almost always have to wait for it...and not just a week or two, but months. A lot of that was because we simply didn't have the money to just buy what they wanted. I think my girls are very financially responsible....even my 9-year-old knows she needs to save her allowance to buy the "big ticket" items.

Everything my girls have, they worked to get. They have cell phones, but they have done 1-3 chores every single night for at least 5 years. No days off either.

[MommaColleen]

My kids earn an allowance as well. But, what we require in our house is that 1/2 of all money they earn, get for their birthday, etc go into their savings account. They are permitted to spend the rest on what they want.

Our older 2 know how much a new CD or video game costs and they will work hard to earn what they need to buy it. They do very well with this and enjoy getting their bank statement each month and seeing how much money they saved and how much interest it earned.

[sharinielsen]

My kids are too young for this but after talking to high school kids every day (I teach) and realizing that they truly have no concept of money, I believe I'm going to try out my "credit card" experiment and have my kids try their hand at the stock market.

My husband and I will serve as the "bank" and let kids buy stuff for a few months on credit. They can choose what to borrow money for and I will let them purchase whatever they want (within reason) for a few months. It is their responsibility to either pay us back on time or to let interest build. They will receive a statement from us every month and see how quickly they could get into financial trouble. I actually hope that they make poor decisions so it will be more of a shock to them and scare them away from making the same poor decisions in real life.

I'll also let them research some stocks and invest a certain amount of money into the ones they choose. Of course, I will be the bank so they won't really lose any money in the actual market, but they will get the idea of the importance of research and the potential for increasing their profits or for losing their shirt in the process.

I'm hoping to start this when the oldest is about 14-15 and can earn a little side money babysitting and can benefit from a few lessons about what to do (or not do) with it.

[QueenAngie]

Teaching them to use a checking account, balancing, deposits
as well as having a savings account are very important for all teens to learn and experience.

When they have to earn their 1st paycheck, with the various deductions, it is a good learning experience.

[Swimkidsmom3]

My 16 year old has a weekend job during the school year (more days during the summer) and babysits. My husband and I have gotten her a Visa Buxx card that we put a certain amount on each month. That is her spending money from us for everything she does around the house. She uses that to cover, lunches with friends, movies and other things. She buys her own clothes so she sometimes uses it for that also. The card has been great lesson in managing her money. She knows when the money goes in so she has gotten pretty good at budgeting her money.

[1stTimeMomOf2]

Okay - I'm not too much older than teenagers (22). When I was a pre-teen we earned allowance for doing chores and anything we wanted such as a cd or in my case a new shirt or nail polish, I had to pay for. We didn't have bank accounts then, but my mom taught me how to balance a check book and how to pay bills and how banking worked from her account. When I turned 16 and got my first job I got a savings account. By that time I had a cell phone, which I had to start paying for, and I understood how to balance my register. I took my paycheck to the bank each week and really realized how it all worked. I also had older cousins who were getting into financial trouble because they were getting credit cards and being irresponsible. I still don't have a credit card, but I have a couple loans and I have never had any issues. I think that teaching your children early about how things balance out helps them understand how it flows. I also worked at a credit union for a year so I got a REALLY got concept of what happens when you don't stay on top of your account.

[Swimkidsmom3]

The Visa Buxx card is like a checking account, but it's used like a debit card. My daughter has a savings account but we found that with a checking account she was not allowed to use it many places since she only has a driver license. (we are not willing to get her a credit card). With the buxx card she has to balance her account just like a checking account. The money in that is for the chores she does around the house and when it is gone it's gone.
Sorry if you thought it was a credit card. I agree with you, giving kids credit cards is not teaching them to be responsible.