Financial Fitness for Teens and Preteens
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.
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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