San Diego, CA. “Teens 16 and older getting jobs between school terms will learn some things about their time and money too. For example, how hard it is going to be for some of them to hang on to their money and, for others, where does all their time go. Parents can help teens understand the work-a-day world by creating a positive learning experience for their working teens and greatly impact it by monitoring their finances and providing some helpful guidance,” says the nonprofit Institute of Consumer Financial Education (ICFE), a San Diego based group.

An important first lesson for teens is the value of the money they earn themselves. Because most teen jobs are hourly, kids quickly connect between work preformed and wages earned. Many youngsters receive an allowance from parents before ever getting a real job, so they already have developed some spending habits. But, allowances, even conditioned on doing household chores, may often be taken for granted. When a teen who is given to impulse, however, decides not to work as much in a given period ,will learn the consequences of that decision when the next paycheck comes.

Money gives people decision-making opportunities. Allow young people to make spending decisions, both good and poor, and let them suffer the consequences, by not bailing them out. Later on, encourage a discussion of pros and cons before more spending takes place. Encourage common sense when buying. That means doing research before making purchases, looking for discounts and coupons, waiting for the right time to buy, and employing the spending-by-choice technique which is selecting at least three other things money could be invested or spent on, once it has been decided to make a purchase.

©  Paul Richard, RFC and the Institute for Consumer Financial Education. All rights reserved.