What is the best way to teach a teen how to manage money and be responsible with their earnings?

Is there a special program I can buy to teach my kids how to manage their finances, keep their book balanced, etc...

Public Comments

1. as a parent lead by example. my parents taught me when i was a child. remembers, parents are the child's teacher. children are nothing more than an extension of their parents.
2. Have them read Rich Dad, Poor Dad by Robert Kiyoasaki. Dave Ramsey has some great books too. But, really the best thing you can do is learn to manage money yourself, then teach them by example. Parents that are responsible usually have children that are responsible.
3. let them make their own mistakes and that will be the best way for them to learn
4. First of all, are they earning this money? From my own exper- iences when I worked for money in liew of an allowance, I was very frugal with my paycheck. I have seen that kids really learn the value of a dollar if they have to work to earn it. So that they find out how hard it is to get paid for a chore or whatever and are often reluctant to spend it. I don't know of any course. I believe it's up to the parents' to instill the basics of how to save a portion of their allowance or their pay from doing a service or something similar to en- able them to get paid. Some kids earn an allowance during summer for helping with their yards, learning to do their own laundry, learning to make their own lunches while parents' work, and other responsibilities. Then when they get those handled, they can go door knocking to get lawn jobs, walking dogs, or even running errands for shut ins. If the work can be fitted into their schedules after finishing jobs at home. Then after they've collected say $15.00 or more, they can put 25% of it each week into the bank into a special account you've opened for them. They can't touch that initial amount deposit. It will stay in for a 'cushion' and it will draw some interest over time. Let them learn that by doing so, later on, you can show them how to take that initial nest egg or cushion and invest it in something that can make more money. You can start with a savings bond, that will take several years to reach its' maturity, before they should cash it in. Lay a foundation for them while they're young, and help them to learn how hard it is to work and earn money. And when they are 17 or of legal age to work, let them find a regular job where they will learn on the job and learn how to save a small portion of every paycheck to put into the bank. You can teach them about investing into things that will be safe and will pay off in small paybacks until they get the hang of how investments are to be handled. No need for a bank book when they're just starting out. When they have enough to make a decent deposit, that will be soon enough. Good luck on this sensible teaching venture.
5. I highly recommend you read Secrets of the Millionaire Mind by T. Harv Eker. He has a very practical, simple, and fun program that anyone of any age can do. He even has conferences to teach how to manage & grow your money. I have attended the Millionaire Mind Intensive seminar at which many kids were in attendance. It's great to teach them when they are young and the other thing is that you don't want them to emulate any poor habits that you might have with money. So it really starts with the example that you set for them, and you should work on it together as a family...it can actually be fun instead of scary! Good luck!
6. Take a look at Rich Dad's Cash Flow Game I play it with my kids all the time