Financial Fitness for Teens & Preteens
Preteens spend more than $19.1 billion annually, 87 percent of which is supplied by parents. This data on the youngest of Generation Y (those born between 1982 and 1995) comes from the Summer 2007 edition of On Investing: Strategies & Ideas for Clients of Charles Schwab and a 2003 Harris Poll.
Add that to the $15 billion a year spent on TV advertising to kids, and the chances of our preteens developing healthy spending habits drops dramatically.
The study has some advice on how to get kids back on track financially:
- Teach kids to save, starting in preschool
- Give kids an allowance, but make them responsible for buying certain items, so that they learn how to set spending priorities
- Teach by sharing your own financial decisions with your children, especially those concerning family expenses like vacations, and your saving priorities relating to their college funds
Disclaimer: This content is the opinion of the author(s) and not necessarily that of your health care provider, the Palo Alto Medical Clinic, the Palo Alto Medical Foundation, or Sutter Health.
This information is provided for your general information and education only, and should not be relied upon for personal diagnosis or treatment.
If you feel like you have an illness or need emotional support for a problem, please contact your personal physician NOW.
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Written & Reviewed By:
PAMF Senior Research Associate
Nancy Brown, Ph.D., M.A., Ed.S.
Last Reviewed: October 2013