Teaching Teenagers to Save

by Lee Wyatt
(last updated August 23, 2013)

It often seems like teenagers love to do nothing more than go out and spend money. Well, who doesn't? After all, it is a lot of fun to spend money. However, if you don't take the time to teach your child the importance of saving properly, then they are much more likely to run into serious financial trouble later on in life. Teaching teenagers to save may not seem like a whole lot of fun, but it is something that is vitally important, for both you and your child. Here are a few methods that you can use to get started.

  • Teach them about high yield savings. Take the time to teach your teen how helpful (and profitable) a high yield savings account can be. Look around for the best ones that you can find in your community, and sit down and do some math with your kids. Show them how by simply letting their money sit there, they are actually making some money over time. Show how the more money that they put into the account, the faster their return is. Sometimes simple greed can be a very effective teaching tool.
  • Make them responsible. Another method that you can use to help your teenager learn how to save is by making them responsible for the things that they want to purchase. For example, if they want to have a new stereo for their room, a new iPod, or a new dress for the school dance, make them pay for it. Not only will they learn that they will only get it if they save for it, but they will also come to value what they purchased more than if you had gotten it for them. An extension to this would be to allow them to fail if that is their choice as well. If they decide to spend their money on something else, make them live with the consequences of that choice. Use it as a teaching opportunity, but don't be mean or excessively harsh about it either.
  • Don't be afraid to talk about money. A common mistake that many parents make is that they are afraid to talk about money with their children. Take the time to sit down, once or twice a year, and teach them how important it can be to save money. One very effective method for doing this is to have them sit with you and do your bills. Don't skimp out on them when you do this, be sure that you include everything so that they can see how close it can be, and how important setting aside a little when you can afford to, can help you out later in an emergency.

Author Bio

Lee Wyatt

Contributor of numerous Tips.Net articles, Lee Wyatt is quickly becoming a regular "Jack of all trades." He is currently an independent contractor specializing in writing and editing. Contact him today for all of your writing and editing needs! Click here to contact. ...

MORE FROM LEE

Diagnosing Toilet Problems

One of the most basic skills that any do-it-yourselfer should have is how to figure out a problem with their toilet. ...

Discover More

Using a Slow Cooker Properly

Using a slow cooker properly is a fairly easy thing to do, if you follow a few simple guidelines. The first step to ...

Discover More

Reupholstery Tools

Reupholstering your furniture is a great way to not only create a new look, but also a great way to save money. Before ...

Discover More
More Money Tips

Savings Accounts for Children

Savings accounts are a valuable teaching tool for children and it can be used to foster a savings mindset that will serve ...

Discover More

How Inflation Affects Your Savings

Inflation is caused by rising costs for labor, production and debt payments. This in turn cuts the future buying power of ...

Discover More

Choosing a Savings Account

Different savings accounts flood the savings market. These mug shots of commonly seen account types can help you keep ...

Discover More
Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is six minus 5?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)