Give Teenagers An Incentive To Save Money
May 8, 2007 by Erik Folgate
Filed under Cars, Kids and Money, Spending and Saving
The old cliche, “you can’t teach an old dog new tricks”, really hits home when it comes to personal finance. The older we get, the more set we become in our habits whether its the ability to save money, biting our nails, or cursing like a sailor. One of my passions to help spread good, sound financial principles to young people across America. So few high school and college students graduate without any knowledge about how to manage their own money. They may learn how the stock market works, but they have no concept about personal investment theory, putting together a budget, buying a house, or saving money for the long term. It’s time for my generation to step up and do something about it. We need to take action and help middle school and high school students understand how to manage and save money. One of the best ways to help a teenager learn about saving money is to give them an incentive to save it. One of the biggest items that a teenager craves when they turn 16 is buying that first car. It’s more than wanting a sweet looking car, it’s about freedom. Parents go nuts thinking about the freedom it gives that teenager, and teenagers salivate over the thought of that freedom. You can use the purchase of a car as a learning tool by setting up a savings program for it.
Kids and Money: The Envelope Method for Children and Teens
March 1, 2007 by Erik Folgate
Filed under Kids and Money, Random
I’ve told you before on this blog that I use the envelope method at home. The envelope method helps you see where your money is going each month. I love the debit card, but I used to use it religiously, and we never kept track of how much money was going towards certain areas of our life. With the envelope method, you can only use as much money that you put in the envelope, and then your done for the month. It’s a great way to force those of us who spend money like water (that would be me).
Educating Your Children About How to Handle Money
February 26, 2007 by Erik Folgate
Filed under Kids and Money, Random
My wife has a little sister in 5th grade, and like to make fun of her, because she loves asking us to buy her stuff, but when it comes to using her own money, she’s about as staunchy as it gets. I always say that she gets it from her big sister, and that is usually around the same time that I get punched in the arm by my wife. This brings up a great question about when young people first start learning about personal finance and how to handle money. How old were you when you started learning about the value of a dollar? Did your parents teach you, or did you have to learn about it the hard way?
