Money Smart Kids Ages 15-18

SVDCU wants to share tips for teaching children good habits about money management. The information was originally published in Smart Parenting - Money Smart Kids.

Ages 15-18

Your teenagers will likely earn money from a part-time job. This is the time to open a checking account. Be sure they know how to keep records and balance their checkbook. Give your teens more responsi­bility for handling money and making decisions. Older teens can shop for school supplies and clothes—with an expanded allowance from you. Control over spending with a dollar limit.  This will force them to make better decisions. For instance they'll soon realize that buying designer brands means fewer items for their money.

Reality Check

All young adults need to learn the cost of everyday life. Work up a realistic list of the expenses your teens would have if they lived alone. Include the cost of groceries, clothing, rent, utilities; car payments, insurance and gas (or public transportation), taxes, healthcare, entertainment, and miscellaneous (car repairs, household supplies, credit card bills, etc.). Then compare this list to your kids' projected income. They'll see how they'll have to budget and possibly cut back on expenses in order to afford everything.

The Cost of Credit

You may consider letting your teens use your credit card, but there are drawbacks.  You have no control over spending and are responsible for paying the bill. You can teach the cost of credit in another way by charging interest on a small loan you give your teens for a relatively costly item, such as a digital camera. Be firm with your kids paying you back with regular payments on time.  This will help them develop good habits. 

You can teach your children how to save money by partnering with SVDCU. Open an account today with a minimum deposit of $10.00. They then become a member of the "Very Important Kid" Club.