Most teens go into the work world ill-prepared to manage the money they will be making. Even if their parents have attempted to teach them about money, they still haven't had the wonderfully frightening experience we have all had. You know the one: It's called ``getting to the end of the money before the end of the month.''
Here are some tips on teaching teens about managing the money they are about to make.
Once they get a job, here's what to do. Have them take the very first pay check and ... blow it. You might have been expecting me to say save it, buy a savings bond or something else responsible. Here's why I suggest having them spend it: They get to experience the benefits of hard work and have some fun.
After the first paycheck, here's how to handle every other paycheck, for the rest of their lives. I call this the 10 by 4 solution. With each and every paycheck, take 10 percent and put it in four different places.
1) First 10 percent: Pay yourself first.
Put this 10 percent in some form of savings that you do not touch until you retire. Begin this when you're young, and it's amazing what can happen. If a person starts at age 21 and puts just $1,000 a year into some kind of savings that will gain at least a 10-12-percent return a year (this is very doable, by the way), and did this for only eight years until age 29, and then didn't touch it until age 65, he or she would have accumulated almost half a million dollars.
2) Second 10 percent: Give it away.
If you are a person of faith, you've probably been taught to tithe. Whether it's tithing or simply giving to a favorite charity, giving away 10 percent teaches your brain an interesting thing: If I can give this away, there must be more than enough to go around. A nice way to feel.
3) Third 10 percent: Put this 10 percent toward getting rid of any debt that may have accumulated.
4) Fourth 10 percent: Save it up for something you really want.
For many kids that's a car. Or maybe a trip, a stereo or some nice clothes.
In this way, you are teaching your teen, from day one, how to live on 60 percent of his or her income, instead of the 110 percent that most of us live on.
Visit parentingyourteenager.com for tips and tools for thriving during the teen years. You can also subscribe to our f*r*e*e 5 day e-program on parentingyourteenager.com
scheduled cleaning services Winnetka ..Giving advice to a teenager is very easy; getting a... Read More
As a parent, you can learn a lot about your... Read More
I will never forget the day that my daughter's sixth... Read More
"My son won't go to bed at night without a... Read More
"If a kid asks where rain comes from, I think... Read More
Is there anything wrong with lying, cheating, stealing, shop-lifting, taking... Read More
Have you made your usual New Year resolutions? You know... Read More
Q. I don't like my children spending so much time... Read More
"He is happiest, be he king or peasant, who finds... Read More
Not too long ago my teenage daughter approached me with... Read More
When you hear the phrase, 'guerrilla parenting techniques', what images... Read More
In the news, we hear and see an increasing number... Read More
On one of her quarterly visits to see her grandson,... Read More
It can be difficult on all family members to have... Read More
A parent writes in, ``We are having a hard time... Read More
I am sure that this list can be jogged and... Read More
In our last issue we posted some of our suggested... Read More
At age seven months in the womb, humans begin language... Read More
Children are moral and make moral determinations... at least until... Read More
Why Is Spending Time with Your Child So Important?For children... Read More
Part of the responsibility of being a father is to... Read More
Teens don't learn responsibility overnight. If you haven't been working... Read More
A sure way to double the joys of parenthood is... Read More
I have always found the notion of toilet training a... Read More
Article based on a friend's experienceI just wanted to share... Read More
reliable maid service Lincolnshire ..I know this Mom. She homeschools her 5 children, plus... Read More
My cousin boasts five names and I confess that when... Read More
Q. We recently caught our son smoking pot, and we... Read More
Family decision-making is an intriguing phenomenon. Many factors become part... Read More
Teenagers are a work-in-progress, and parenting teenagers can be tricky... Read More
Saturday mornings. Cold cereal and Scooby Doo. How many parents... Read More
Congratulations on your new baby! You have just brought your... Read More
Here are fourteen spontaneous time-outs, specially designed to help you... Read More
I still remember the scene vividly. I was getting out... Read More
I wanted to share with you one of the most... Read More
What exactly makes safety glasses different from regular glasses? There... Read More
Rule #1 Make Every Bite Count!Everything your child eats should... Read More
1. The Law of the BeastAs parents we need to... Read More
Unfortunately each year many young children drown in swimming pools,... Read More
Best friends! It may seem impossible to believe, but today's... Read More
When a couple steps forth with a baby in tow... Read More
The wonderful adaptability of children in dealing with the challenges... Read More
Life is comprised of pieces of time sprinkled with pivotal... Read More
Winifred or Willow? Thomas or Troy? The name you choose... Read More
If you're looking for toys that are both fun to... Read More
Is there anything wrong with lying, cheating, stealing, shop-lifting, taking... Read More
You are sitting with the professionals who know about learning... Read More
"It takes a village to raise a child" is more... Read More
Often, the struggle at dinnertime with your picky eater is... Read More
Child care costs are are one of the most expensive... Read More
Parenting |