With increasingly high debt becoming a bigger problems in families every year, it is more important than ever that parents teach their children to be financially responsible.
Given the current economic crisis, with no end in sight at the moment, you can’t start acting too soon to tackle your family’s debt, and actually not only get out of debt, but start building wealth for the future.
While every child is different, and some can learn to be responsible with money at a younger age, parents should definitely make sure to teach their teens how to handle money before they are in college or out on their own.
In The Sink or Swim Money Program, John E. Whitcomb takes parents through a 6 step plan for teaching teens how to be financially responsible.
In Mr. Whitcomb’s book, he takes a humorous look at teaching kids the value of money and making them responsible for their own money and purchases.
Here are a few of the ideas his book focuses on:
* Calculating a budget
* Work out a contract between you and your teen
* How to plan ahead
With this system, the main point is that the teens are given a set amount of money that is to cover their basic needs, that you would normally pay, such as food, clothing and other necessities. It is a trial and error method, where the kids are given free rein on their money, and will quickly learn what they can and cannot do with it.
In addition to the lessons on spending, the book deals with planning for larger expenses, such as college, cars and insurance.
It also includes sections on checking accounts, credit cards and tips on saving and earning extra money, with lesson plans and sample contracts.
If you’re concerned about your own finances, you will benefit from this book as well. If your in good shape but concerned about the current economic crisis, this book will be a good tune up for your situation. If you are in good shape but want to do better in the future for you and your whole family, you and your teen can go over the book together to help work toward that goal.
And best of all, you will also be working toward you teen achieving financial independence, and a secure future for him or herself, and succeeding generations.