Parents of teenagers will likely have had multiple conversations with their children about money in the current economy. These conversations have likely revolved around teens asking for more money that you can afford. It may seem impossible for teens to manage their own money without some guidance from their parents.
Discover Card has some helpful tips to make money management conversations more enjoyable for parents struggling with their finances.
Show them the money. Depending on your comfort level, you might offer your teens a glimpse at the household bills. You will be able to give your teens a better understanding of the cost of everything. Keep track of your expenses for one month, as teens often ask for money without knowing how much the clothes and movies actually cost. Ask your teen to keep track of all their expenses, including movies, clothes and video games.
– Needs Versus Wants Assemble with your teen and help them to separate their needs from their wants. Next, determine how much money you will give each month to their needs. A set amount of money is a way to force teens to prioritize what they spend their money on. The Current Card from Discover, an innovative debit-card that helps teens manage spending and protects their money, is a great way to give this cash to your teenager.
– A Penny saved is a Penny earned. Encourage your teen and encourage them to save for big-ticket items like a cell phone or a senior vacation. Ask your teen to set aside money for the remainder of the cost if you agree to contribute. You should make it clear that your contribution will not be increased if they can’t pay. Also, you should help them to set up a savings fund if necessary.
Get the record straight. Keep track of where and how much money your teen spends. The Current Card allows parents to monitor spending activity online and via text and e-mail alerts. To help teens manage their finances, financial literacy information is available.
Visit this page to learn more about ways your teen can save money and spend smarter. www.CurrentbyDiscover.com.
