After several years of babysitting and pet-sitting for spending money, 15-year-old Annie T. earned her first real paycheck this summer, working in a deli. “It’s a very good feeling,” she said, “when you get that paycheck, and you know, ‘I earned this by myself.’” Annie decided to save $125, put $100 on her debit card, and kept the remaining $75 for a trip to a store for some back-to-school shopping.
Ben W., an entrepreneur at 14, started his own pie-baking business and ran a pet-sitting service this past summer. With the $500 he earned, Ben bought a guitar and an amplifier, and started saving for a laptop. From allowances and family gifts he has also socked away over $1,000.
Annie and Ben are already on their way to being money-smart teenagers. But they didn’t do it alone. Both have been guided by their parents in learning how to think about, plan for, spend, and save their money.
“Parents are the most influential role models for children,” said Janet Walbert, a certified financial planner with USAA (United Services Automobile Association) in San Antonio, Texas who recently helped conduct a USAA survey on teens’ attitudes about money.
The survey, “High School Confidential: An Inside Look at Teens and Money,” found that teens take cues from observing their parents’ spending habits, instead of listening to them talk about money.
According to Laura Levine, executive director of The Jump$tart Coalition for Personal Financial Literacy in Washington, D.C., one of the first financial lessons parents teach children is the difference between necessities and luxuries. This is a vital lesson to learn in order to take responsibility for their own financial security and learn how to control their spending.
Experts encourage parents to talk about money often and consistently. Annie’s mother, Jean, said that she and her husband have always talked about “the importance of saving and what you are saving for. We also shared family discussions about giving to charities and planning for vacations, and the importance of using a debit card.”
linda steele, Georgetown 07/18/07
From the day our son was born ( he's now 14) he has had a passbook savings account. You have to be able to hold that book and look at the balance grow as deposits and interest are added. It's key early on. On birthdays and at Christmas he has to put into his savings acct 50% of all money received. The rest he keeps in a wallet with any gift cards (these also count in the $ amounts to be saved). He also can't accrue more than $100.00 in his wallet. (It use to be $40.00 when he was younger.) The excess has to be transfered to his savings account. When you have to physically go to the bank to withdraw from that book it gives him the time to think about that expense and if it's really worth it. Does he have a cell phone? No .. he doesn't want one. Does he have an I-Pod? No .. he doesn't want one. Does he have a really nice bike - Yes and he paid for it and he takes care of it. Does he have a great set of golf clubs . Yep and he has paid for most of those and pays for most of driving range cost and greens fees.
And when he gets his working papers he will get a job. He does not have a choice and he will be required to bank it and we will open a retirement fund for him at that time.
Start small early on and they will be set for life!
If they do not earn it they will not appriciate it and they will not take care of it.
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