How can you help a working teen budget and save for the future?


Susan - posted on 10/16/2011




I know this is a older post but I figured I would respond just the same. There are a few things you can do to help a teen save for the future, some are easier than others.
1). You can start a forced savings plan for your teen. This is done where you would literally take a percentage of their paycheck and at the end of each month put it into a IRA or mutual funds. This method works, however, it may cause some resentment of your teen for the idea of savings, cause to the teen, "Mom is just taking my money"
2). My favorite. You yourself will need to know a thing or two first, best way to learn are to read up on the topic. The "for dummies" series of books has a couple on finances. Another way to learn would be to sit with a financial rep who can educate you and maybe even your child. The basic form of the education would be that time is your friend when saving, starting early means that you can save less and still have big money later in life, plus saving early will instill the idea that it's important and most people will find ways to save more later in life. This way will work if you have a good relationship with your child, don't be afraid to use you own self as a positive example to follow, or a negative one they should avoid depending on your situation.
3). Tell them you are going to show them how to become a millionaire, it'll take quite a few years, but they will get there.

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