The Complete Idiot's Guide to Money for Teen

Teens are targeted as consumers more and more. This gives them tremendous influence, but it also sets them up to be taken advantage of. "The Complete Idiot's Guide to Money for Teens" teaches them how to get money, save and invest it, budget it, spend it wisely, and keep track of it. Whether they're saving for their first car, trying to make sense of a checking account statement, or trying to establish a good credit history, this guide has solid information and teen-tested tips.

Why money is so important in our society, how one can go about earning money, and other topics such as budgeting, debt and investing. The author provides concrete information that is beneficial for any teen who wants to become familiar with the basics of financial management. Shelly writes on the level of a teen-ager, short and to the point. She leaves out the extra, useless information that would cause narcolepsy in most of today's teenaged population. Shelly goes into detail about how to "make your money work for you." She talks about the benefits and disadvantages of different types of savings accounts, checking accounts, and money market accounts. The Complete Idiot's Guide to Money for Teens is a great book for anybody who wants to be more financially savvy. The essential information it provides will send any teen on his or her way to a financially successful future.

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Needs and wants

Explain the difference between wants and needs. For example, food, shelter, clothes, electricity and transportation belong to human needs category. Designer clothes or designer coffee and soft toys in the shape of popular cartoon characters qualify as “wants”.

Never forget that the kids will be watching their parents spend money on themselves. Make sure that you do not tell the pleading child, “You don’t need that” or “That’s a waste of money” and then go and buy yourself something which clearly falls under the “wants” category.
Let your child know that your first responsibility is to provide for the family’s needs. Only when the “needs” have been satisfied can the family think about spending on other things.

Savings Account

Open a personal savings account for your child. This will encourage her to save since she can see the money growing when the passbook is updated. Some children’s savings account give free gifts and club memberships to their young savers.

BUDGETING

Overspending is also part of the lesson about managing money. If it happens repeatedly, there would be a need to find out why it happens. Where did your child blow their allowance? Does she know where it went? If not, this may be a good time to suggest keeping a simple record of her allowance. This is where budgeting comes in.

Budgeting will help her trace how she spent her money and determine whether the expenses are necessary or can be cut down