No one can argue that children
should be taught the value of money. In fact, they should be exposed
to educational activities that will encourage them to learn about
money at an early age. Experts will also agree that children should
be taught how to save money and that saving money should be emphasized
as children learn more about money concepts.
Parents can start by identifying an affordable allowance for
a child. Instill into the child why this allowance should be spent
using a budget, and help the child understand why it is important
to stay within a given budget.
Perhaps a parent may wonder at what age should a child be introduced
to money concepts. You may find these age guidelines helpful as
you teach children about money.
American teens spent an average of $104 per week in 2001 according
to a Teen Research Unlimited study. Approximately $172 billion
passes through the hands of youth annually, or an average of $3,000
each year. You might wonder where they spend their money. Following
is a list of merchandise or goods that teens often purchase:
Decide with your child in advance how much of their money (earned
or allowance) should be saved. If your children have a summer
job, they could make more money than they should spend. Also,
set an achievable goal to be reached with the savings, i.e. trip,
National Consumers League (2002). Teens
and finances. Money and Credit. Retrieved June 9, 2003.
Womack, Sandra. (2001). Family money matters. Maryland
Cooperative Extension University of Maryland College Park, Eastern
Bodnar, Janet and Matt Popowsky. (August 2000). Into the
job pool. Kiplinger's Personal Finance Magazine. Vol.
54, Issue 8, p. 126-128.