It seems as thought there are more and more things for our teenagers to buy each day. There are video games, expensive clothes, designer sports shoes, mp3 players and so much more. If, like nearly everyone, you do not have pots of money, then it is clearly hard to give your teenagers everything that they want and, as a result, it is important for us to help them to understand the value of money.



It is critically important to start teaching your kids about money at an early age. Beginning at about age 10 you should give them a few dollars each week which they can spend in whatever way they want. This weekly allowance should not 'free' but has to be dependent on their completing some household chores. You should however work with them and let them decide what chores they want to do instead of giving them specific tasks. It is also important not to set limits on what they can spend their allowance on and also that, once they are getting an, you do not then simply continue buying them things they want. They need to, and soon will, learn that if they spend all of their allowance as soon as they receive it they will not be able to purchase some of the more costly things they want.

It is also vitally important for you children to learn the principles of budgeting at an early age and discover just how much things cost. Take them to the mall when you go out shopping, have them help you with working out the household budget and let them watch you when it is time to pay the bills. It will not take them long to get a feeling for exactly how costly everyday living can be.

As your kids get older, and certainly by the time they get to the age of 13 or 14, gradually raise both their level of responsibility and their weekly allowance. For example, add their lunch money to their weekly allowance and make them responsible for buying their own lunch. As they accept more and more responsible, teach them to prepare a budget for bigger items such as clothes or an mp3 player, and make them stick to their budget. Once again, you will find that they will quickly learn that if they want to buy expensive items, they have to make sacrifices elsewhere.

Do not forget too that you can always backtrack. If you find that your kids are not learning how to to use money sensibly and for its intended purpose, then do not be afraid to step in and take control of that money again until you are satisfied that they can handle it.

A some stage, your teenager will get a job and this is one of the best points at which to introduce them to the idea of saving. Get them to put a percentage of their wages into a savings account which they should come to regard as funding for major projects, such as their college education or other significant pursuits. Additionally, get them into the habit of putting a small proportion of their wages to one side to pay for less important, but still expensive, items such as a computer or video game system. Having made these provisions, you should allow them to spend the rest of their wages in whatever 'crazy' manner they choose and, if you are worried about what they are buying, then open a checking account for them which you can monitor.

Teaching your kids the value of money can be a long and slow process which takes a number of small steps and will not be without its problems. Your children, and in particular your teenagers, will undoubtedly mess up but remember that we learn some of our most valuable lessons as a result of the mistakes that we make.