My sixteen year old son has a job that pays about $80/week and a savings account with about $1,500 and a Roth IRA with a few hundred dollars. How would you teach him effective money management skills - credit/debt traps, budgeting, retirement, investing, etc.
2007-02-06 11:02:17 · 9 answers · asked by astatine 5 in Business & Finance ➔ Personal Finance
Take him to the bank and have the banker explain how a checking account works. Depending on how trustworthy and dependable he is, he could get a debit card. Otherwise, start him with an ATM card and be sure he keeps track, then progress to the debit card. I would also suggest a monthy investment in the roth IRA. I am a banker and cannot tell you how often a kid goes off to college, then gets his first checking account and ends up hundreds of dollars in the hole. Guess who ends up paying for it. By the time they're out of college, there's credit card debt, student loans and still no financial savvy. A little experience now will go a long way when he's on his own!
2007-02-06 11:13:57 · answer #1 · answered by Joseph's Mama 4 · 0⤊ 0⤋
Actually, it wasn't until I went back to school as a mature student that I was taught to not believe everything I see and hear in the media. I guesss beforehand I always took what I saw on TV as truth, without even realizing it.. It was a World Issues class (Grade 12) and taught coincidentally by a teacher who had taught me in Jr. High many years before. Years later when I took a second (or third, ha ha) crack at high school, I was in an English class that assigned me to do a study on the different types of media and how they affected different classes of people. It was very interesting.We also took three basic forms of media (TV, radio,print) and compared how each one broke down their news. For example, television seemed to be more sports related, newpapers were more focused on current events, and radio seed to broadcast a bit of each on the hour but mainly focused on weather. This was an average of several outlets, of course. The main point of this assignment was to support the theory of the medium being the message. All in all, because I have attempted school so many times in my life, I have been able to see that more and more emphasis has been put on the opinion of the student and less on what is absorbed from a textbook. I find that classroom discussion is much lengthier than it used to be back in my day. I would hope that students today are armed with the little more knowledge and are encouraged to express their thoughts and opinions more freely.
2016-05-24 01:05:05 · answer #2 · answered by ? 4 · 0⤊ 0⤋
By the looks of things, you've already got a good start.
I agree with the suggestion for Ramsey's Financial Peace course. Thirteen weeks, but well worth the investment in both time and money. If not the class, get him a copy of either of Ramsey's books, "Financial Peace" or "Your Total Money Makeover".
Additionally, include him in your own financial planning. Bring him in to see how you pay bills, budget, choose retirement options. After he's watched you a few times, let him try (you'll have to sign any checks, of course). If you have debt, let him see how difficult it is for YOU to get it paid off, how much interest is charged, etc. Kids learn best by example, so model good money habits for him and he'll succeed.
Whatever you do, DON'T do like another answerer said - DON'T get him a credit card (do you really want to burden him with that?)
The link below is to a very interesting chart Ramsey created.
2007-02-06 13:21:36 · answer #3 · answered by homeschoolmom 5 · 0⤊ 0⤋
I believe there are some books on just that subject-how to teach teens about money management, saving, investing etc. I think Clark Howard and Suze Orman may have some books out on that subject. There are probably other authors who have some books on the subject as well.
You might also want to get some statistics on how one can become a millionaire by saving and investing so much each month. I have heard about this, and perhaps some of the books you check out will break this information down for you so that you can inform your son (use charts, graphs, etc.).
I think that you have to make it fun for teenagers because they may not get excited about it unless you do.
2007-02-06 11:18:15 · answer #4 · answered by Seldom Seen 4 · 0⤊ 0⤋
Get him a secured Visa card with a relatively low limit like $500.
And also he should have a checking account that he has to manage. Make him responsible for not overdoing it on the secure visa and for paying the Visa off each month.
2007-02-06 11:06:20 · answer #5 · answered by HomeSweetSiliconValley 4 · 0⤊ 0⤋
I recommend that you introduce him to Dave Ramsey and his concepts. He talks about how to budget money including saving, spending, and giving.
He also teaches about how to save for retirement and other things.
He absolutely rocks! His website is www.daveramsey.com.
2007-02-06 12:41:41 · answer #6 · answered by Jen G 5 · 0⤊ 0⤋
Give him a gift: Rich Dad-Poor Dad by Robert Kyosaki
He is in the correct road, he has a job and isn't indebted.
2007-02-06 11:05:41 · answer #7 · answered by Carlos G 3 · 0⤊ 0⤋
Send him out to buy groceries or let him pay the gas bill once. That should teach him a thing or two.
2007-02-06 11:07:29 · answer #8 · answered by Anonymous · 0⤊ 1⤋
http://www.daveramsey.com/hope/nomatterwhat/
might cost a little money - but so worth it! He is all about helping people, not getting rich off of selling the stuff.
2007-02-06 11:07:38 · answer #9 · answered by onephathippo 2 · 1⤊ 0⤋