5 Things Teens Should Be Taught About Money

golddustmedia

I learnt if I wanted to buy something new, I had to get rid of something to fund it. Hence by the age of 10 I was regularly wheeling and dealing from the classifieds of the local paper.

It taught me the value of money, the value of your posessions (take care of them etc) and how to deal with people in the big wide world.

To this day I flog stuff all the time, ebay was a fantastic invention for me in the early days (but is rather full these days). In fact this week I've sold my car, some wheels, some speakers, some dvds and have advertised a variety of baby items including pushchair.

Also it's good for recycling as well as my wallet!

Savedanotherpenny

Spendless wrote:

Get used to having your own cash and buying your own things with it.

Several friends of mine with teenagers buying their kids Rockport shoes to go to school in at £100 a time!!

So what happens when they leave school in a few years or become students and don;t have that sort of cash of their own. to me they will either
a, continue to ask parents for money or
b, start buying via credit cards.

I was worried how to deal with this problem - but decided that it would be better all round if I stopped buying my childrens clothes & shoes and gave them the money instead. They can now decide themselves whether to dress in rags and have expensive shoes, or to have a high turnover of cheaper fashion clothes.
They have £15.00 per week for EVERYTHING they need (except school uniform) this includes clothes, social, sweets etc.
There have been hiccups, but mostly they manage really well and none of them have had to go out naked due to lack of clothing yet!:D

Aril

Jane Furnival's latest book 'Smart Spending' has some very good ideas and practical exercises for teaching children about money [I borrowed a copy from the library]
Personally I have given my son a small amount of money per week as pocket money [he's nearly 8] since he was 6. Initially he spent it all on sweets but soon learnt that he didn't have anything to show for it once he'd eaten them all, then he bought cheap bits from the toy shop which fell apart within minutes. Now [from choice] he saves up for a few weeks then we trawl the charity shops. I've encouraged him to pick out stuff that's in nice condition and he's got some fab books, toys and videos that way. His latest purchase is an elephant in mint condition which costs 6.95 in the town new and he got for 1.35. What I don't do is take away his choice...he makes the decision over what he buys and if he gets it wrong then he lives with the consequences.
Aril

MrsTinks

Rule no. 1

To Want is not the same as to Need.

Rule no. 2

Very few things in life are free.

Rule no.3

If you are not willing to work for it then you don't want it badly enough.

kmycock

My first post here (HI!)

As a teen I was great with money - e.g. buying my own DMs by saving up my £4 a week from paperround aged 14 or when I managed to save up to spend a few weeks staying with friends in NY when I was 17 & only earning £50 per week from a p/t job.

However, when I started uni & was faced with knowing that no matter what I did I couldn't make £800 cover accommodation, food & other expenses I had no choice but to see debt as a way to go - student loans & a couple of overdrafts (as well of course as a part time job) was the only way to cover living costs. Once my view of money changed its been really hard to change it back again.

Wirenth

Five things I'd like to see on the curriculum:

1. Budgeting - income, outgoings, essentials, etc.
2. Banking - the 'how does it work' for current accounts, savings, loans and mortgages.
3. Pensions - the 'what is one', how it works, what your options are.
4. Investing - ISAs, shares, bonds, gilts, unit investments etc.
5. Taxes - how to calculate the tax that the government is taking off you. Be able to complete a self-assessment tax return and actually understand each of the boxes on the return...

For me, all of these are essential life skills that people should have in order to financially protect themselves and take responsibility for their own future.

It is in the interest of business and the government for the general populace to be financially illiterate and, therefore, to be taken advantage of.

Sassy_Student

suky321 wrote:

1) Don't use Credit cards
2) Save as much as possible
3) Don't spend money on unnecessary things, cigarettes, alcohol
4) Buy things cheaper from internet price comparison websites
5) Live for the future, don't live for today.

why dont we all just give up, roll over and die now!!


I'm sorry but you've got to spend something on stuff you enjoy - or whats the point in living!!

muddyfox470

1. Money doesn't grow on trees.

2. Go earn your money and you will feel a lot more satisfied with earning it and then spending it.

3. Be wise, don't buy on impulse, research what you want to buy and try and budget (save etc).

4. Be aware of current saving / investing opportunities, where is best to stash your money.

5. Follow the news and know what happens with your money, i.e. the basic economics behind money; how it is spent, what the current base rate is and why!

Ian

BWZN93

Gabs27 wrote:

They are both working full-time, I am amazed to hear about parents who do not expect their offspring to contribute to the housekeeping. I'm sure it can't help them for later on.

This is very true. If I had to say one thing about teaching teenagers about money is that it has to be spent wisely, and primarily on survival. My ex (as of last weekend) was never expected to contribute to his parents, barely managed to hold down a job, and didnt realise the importance of having enough money to support himself. We moved in together post uni and his parents have been continually subsidising him ever since. He got a job for a week and then quit. He wanted his independance but wasnt willing to pay for it. Hence him now being an ex - I wasnt willing to support him anymore.

My 5 things to teach teenagers would be:

*What debt is exactly - differing types of credit, how much they cost and how they are worked out, how to use it effectively and what happens when it all goes t**s up.

* The real value of money - what other people will pay you for not spending it, why its better to not spend all of it, what can be bought with various amounts, Economics (why savings and mortgage rates change over time, the role of the bank of england etc)

* Budgeting - how to maximise money so that you get to keep more of it and what should always be paid on time, knowing how to keep track of it all, bank accounts and the systems they use (standing orders, direct debits, card payments, cheques - which method is best in different situations) and the quality v quantity issue (why some things cost more, and why the cheapest is not always the best)

* Long-term issues - Talking about pensions, investments, protection, insurance, mortgages - What is important, how each of them works, the situations that might arise and why one or more of the above help (e.g - if you make it to retirement, do you want to have enough money to survive or would you rather take plenty of holidays and treat the grandkids? If you were to become seriously ill and couldnt work, would you like to have insurance in place so you can stay in your own home instead of having to sell and move into a rented place? If you were to have children, would you prefer to be able to afford to not go back to work?) etc etc

* And finally - you cant presume that money will always be there, it has to be worked for (employment issues - payday, tax, national insurance, ssp, maternity leave, pensions, how to get a better paid one!) and to always have 6 months of your salary in cash savings so that if you really want a break or cant stand what you are doing - you can afford the roof over your head without expecting anyone else to sort it all out for you.

Sorry for the essay - I know that my ex wasnt taught any of this and didnt even know how much his overdraft was costing him each month until I pointed it out and tbh, it didnt even shock him because he didnt know the value of money. It was always just 'there' for him (so he thought) without any effort and eventually I got sick and tired of bailing him out, and stressing because he couldnt manage it himself.

Jo xx

C_Ronaldo

spend any money you have wisely, think do you really want it before you buy it