Are You Raising One of the Next Generation of Hoodlums: Teaching Financial Responsibility

Dr. Joyce Willard Teal

Teaching your son financial responsibility is an important job for a parent. Since your son doesn’t have experience paying the bills, he will probably be unaware of the value of a hard-earned dollar. Teaching financial responsibility to your young son can set him up for a more mature outlook on money in his teen years. Teaching teens financial responsibility helps them transition into responsible adulthood.

Frequently parents complain about their children behaving as though money grows on trees. These same parents have not stopped to consider just how much time they have spent, or failed to spend, teaching their children to be financially responsible. Begin by helping your teen and younger children use their allowance money responsibly. Have them keep monthly tabs of how much they spend. Get them used to shopping with you for groceries. Teach them to look at the “price per unit,” for items you buy. If  they want expensive items, help them make a plan to buy them on their own. Even if you don’t give your children a regular allowance, if they get money from grandparents or from a job, guide them in spending it wisely.

All too frequently parents spend an exorbitant amount of money for example, to purchase expensive designer tennis shoes for children. Then they complain after the fact. But it is imperative that parents are aware and acknowledge (if only to themselves) that when they behave financially irresponsibly, they cannot expect their immature children to behave in a financially responsible way. Financial responsibility is learned behavior. It does not happen automatically, for any of us. And since some people are naturally more responsible in various areas of life, some will be more inclined to be more responsible in the area of finances. But as parents, you cannot count on this just happening! You must be proactive! Teach your son the basics of finances, such as budgeting. Get him used to setting his own goals, saving and adjusting for inflation. Or, if he wants trendy, new items, teach him how to wait it out until the price falls. Make him aware that prices do fall, frequently after the initial introduction of new, trendy items.

You may want to get your teen son a prepaid debit card or gift card. This can be a good way to get online with him, supervise his activity and help him hunt for bargains with ease. If your son tends to be impatient, however, this might help to teach him that making purchases comes easily. On the other hand, if you show him how hard it is to hunt around and make the most of his money, it can still help keep him grounded.

Help your son to understand that the way he uses his money is connected to the way he carries himself in the world and the types of values he holds and wants to present. Teens, especially, can be very preoccupied with what people think of them and want to have the latest fashions, from clothing to technology. Teach your teen that these status symbols are really just carefully marketed brands and do not necessarily speak to the quality of an item. Help him to understand that being a successful person doesn’t mean having all name-brand items in his home or on his person.

Finally, don’t reward good grades with money. Your son needs to understand that you expect him to do well in school and that doing well in school will yield future rewards; that success in school is its own reward. Visit www.untealthen.com