Youth and Money
Internet companies such as DoughNET, iCanBuy and RocketCash are countering those issues by setting up virtual malls with stores appropriate for teens.
Parents set up prepaid accounts for their children. Some of the sites incorporate learning tools to teach kids about banking.
Parents should always be wary and keep a close eye on what their teens are buying over the Internet. The parent and teen could form a pact, meaning that anything bought on the Internet would be revealed. The Internet does have a sinister side and many teens, armed with a credit card, could be sucked into something over their heads.
Parents – Educate Yourselves – Educate Your Teens
Some parents may wonder why so many groups are making such a clamor? After all, most parents never experienced a course on personal finance and they’re getting by – and in some cases, barely getting by or worse.
Parents must learn to change their old attitudes. This is not the same world that parents grew up in. Teens and children are being saturated with a devious advertising message: Buy!
Spending is portrayed as an entitlement of young people. The ramifications of over spending are not found in this advertising message. Immediate gratification is the only thing that matters. To make that easier, credit card companies single out teens and newly graduated high school students with their message – Buy!
If a teen wants an expensive toy, parents should teach the teens to save their money they make from chores or other jobs. When they have the money, the teens can use a credit card. When the bill comes due, the entire balance needs to be paid off. This is a good way to postpone the immediate gratification factor. It’s okay to want material things but sometimes you just have to wait.
Teamwork
When it comes to money habits, parents can be their teen’s best resource and teammate. But again, that may require some change on the part of the parents.
What is the message being passed onto teens? Most teens don’t have to look any further than the way their parents go about their business with credit cards.
Parents can become more aware of the marketing ploys credit card companies have adopted and be there to educate their kids on what can happen when a teen goes “credit card wild.”
Parents and their teens can investigate and learn about fiscal responsibility and credit cards by surfing the web together. They can help each other and, as a result, become more credit card savvy and financially secure.
Some great resources are:
www.consolidatedcredit.org
www.cautionwithcredit.com
www.jumpstart.org
