Monday, April 24, 2006

Should my teenager pay a small bill each month?

hi got this question from a reader Her oldest son got this first job working about 20 hours a week. She wants to teach him to be responsible about money and wanted to know what other frugal like folks thought.

I got my first job at 15 and had to give my mother 1/4 of my money made to put towards my college savings. Everything else was mine to use however I had to pay for any fun stuff that I wanted to do.

My 16 yr old son is now working. I want to teach him to be responsible with his money, should I have him to pay a small household bill each month?
Yes, a small bill
No, he should be able to do with what he wants
Put it towards college
Put it towards his own expenses (he needs to buy his own clothes etc now)
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Adsense Freedom said...

I think it's great that he's got a job. How about encouraging him to put a certain amount into his own savings each month?

If not, at least he'll be happy to work when he gets to college - something which has helped my own kids pay the bills at college!

trouble333 said...

My 15 year old son has a job also. He pays for the "extra" things he wants. It eases my budget! He also buys cereal he wants that I don't etc. He even offers to pay for family movie night or something equally fun. He also wanted a cell phone. We actually had an extra one on our plan, but decided he couldn't have it unless he paid for it. So he pays $35/mo for that, puts money in the bank to save for his own car and insurance. I think it is a wonderful way to teach children responsibility with money. I paid "rent" when I worked as a teen, $25/week.

Miss Money said...

If I only knew now what I knew then……. Know one ever told me that starting at age 25 if I saved $65 a month by age 65 I’d have a million dollars. And know one ever really taught me the importance or the principle of savings. Really, if I had to choose what my parents taught me about money—how to save it, how to make it or how to spend it—I’d probably have to say, what they taught me the most is how to spend money.

For many preteens and teens today, although bright, educated and smart, they fail when it comes to basic, simple money management skills. 4 out of 5 teenagers can not tell you what goes on inside a bank. And 73% didn’t know that a stock would yield more over time than a savings account, according to Jump $tart. Why? Because finance and money management are not being taught in schools or is just now starting to be taught in certain areas of the country in high schools. Plus, high schools are experiencing the largest dropout rate in their history—1 dropout every 7 seconds or 1 million drop outs in 2005. Plus, a minimum wage increase has just been turned down and wage stagnation is at its worst in 30 years.

If you don’t take the time to teach your children the principles of money NO ONE ELSE WILL! MoneyMoney101 for preteens and teens is coming! Stay tuned.