Is it too Late to Teach my Teens to Save?

Question: What are some first steps to teaching kids how to pay for things they want, even if we blew it early on and they are now teenagers?

Answer: You’re right, it certainly is easier whey they’re younger. But there is still hope.

The first steps are to communicate to your kids that you love them and you want to help them get ready for a life of financial independence. If you don’t, they’ll view the changes you make as cutting off the gravy train.

If your kids are younger than 15 years 6 months, their opportunities for earning money are limited to money they can earn for household chores or odd jobs around the neighborhood — babysitting, mowing lawns, pet sitting, etc.

You’ve got to be consistent about assigning chores and paying them each week based on what they’ve accomplished.

We sit down with our kids every Sunday night, “do payday” and review their finances. Each of our kids is set up with cash envelopes labeled: Give, Save, Spend or Clothes. Yes, they’re responsible for buying all of their own clothes from the money they’ve earned.

If your kids are 16, they should have a part-time job. And even if they work just two days each week, they should have enough money to cover almost all of their expenses.

Just one more thing . . . you may not like it, but you’ve got to make sure that as the parent, you have your finances well organized so you can be an example for your kids. For more details read the "kids and money" chapter in our book or visit our Web site.