Under pressure from the media, preteens are in danger of developing some very bad spending habits.
According to the Summer 2007 edition of On Investing: Strategies & Ideas for Clients of Charles Schwab and a 2003 Harris Poll, the youngest of Generation Y (those born between 1982 and 1995) spend more than $19.1 billion annually, 87 percent of which is supplied by parents.
How to Become a Good Money Manager
- Ask your parents to help you open a savings account, if you do not already have one
- Discuss starting an allowance with your parents. Talk about how you might spend a portion for items such as snacks after school, but also save a portion in the new savings account for a bigger goal
- Ask your parents how they are saving for their retirement, your college education, family vacations, and other things
- Talk with them about their own values and priorities that help them decide how they spend their money
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