Home
>
Parenting
>
Parenting Your Teenager: Kids and Money

Parenting Your Teenager: Kids and Money

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

Wood Dale Chicago prom limo .. Lockport Chicago limo O’Hare

In The News:

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

Internet browsers are useful, but they can be dangerous. Clicking on malicious links can direct you to dangerous websites that steal information or infect your device.

Apple's latest iOS update introduces advanced artificial intelligence capabilities, which may be capturing and analyzing sensitive information.

Breach site confirmed 56,904,909 Hot Topic users' data leaked online. Tech expert Kurt “CyberGuy" Knutsson says the company's silence makes matters even worse.

Tech expert Kurt “CyberGuy" Knutsson discusses how an innovative Easy-Way kit turns standard strollers electric, simplifying navigation for parents.

Tech expert Kurt “CyberGuy" Knutsson talks about T-Mobile being hacked in broad cyberattack on global phone and internet companies.

Tech expert Kurt “CyberGuy" Knutsson shows you how to add, customize and manage widgets for quick access to apps and info from your iPhone home screen.

Wrong Google searches can not only compromise your device and personal data. They can also bring law enforcement to your doorstep. Hackers are targeting Google searches.

China's Shanghai Kepler Robotics has developed a new humanoid robot that can carry up to 35 pounds per hand for commercial applications across various industries

Checking your hearing has gotten easier with the new hearing test feature in AirPods Pro 2. You can take reliable hearing tests using your iPhone or iPad.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt "CyberGuy" Knutsson explains how a VPN — virtual private network — works and how running it can slow down the operation of your device.

The WalkON Suit F1, an exoskeleton developed to help people with disabilities, can actually walk over to a person in a wheelchair, solving a major problem.

ClickFix, a new scam targeting computer users, is on the rise in the U.S. The scam prompts its targets to click on a link to fix a problem.

Skydweller is the world's largest unmanned solar-powered aircraft that can stay airborne for weeks, and even months, without refueling.

The U.S. government said it is investigating after People's Republic of China hackers targeted commercial telecommunications service providers in the U.S.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Scammers are using increasingly sophisticated ways to lure unsuspecting victims, and some are impersonating an email help desk or support team.

You can unsend or edit your iMessages with the latest iOS updates. Kurt the CyberGuy explains how you can save yourself some potential embarrassment.

Kurt “CyberGuy" Knutsson says there’s been a rise in cybercriminal services using hacked police and government emails to send subpoenas and data requests to U.S. companies.

Kurt “CyberGuy" Knutsson discusses how Axiom Space and luxury designer Prada are collaborating on NASA's Artemis III spacesuit design.

Voice assistants may cause confusion across devices. Tech expert Kurt “CyberGuy" Knutsson offers some solutions to fix it.

Shameless scammers trick veterans into giving personal info or cash. Tech expert Kurt “CyberGuy" Knutsson explores five common scams.

Tech expert Kurt “CyberGuy" Knutsson helps you honor our heroes with these powerful podcasts, audiobooks and documentaries this Veterans Day.