According to the Summer, 2007 magazine called On Investing: Strategies & Ideas for Clients of Charles Schwab and a 2003 Harris Poll, preteen members of Generation Y (those born between 1982 and 1995) spend more than $19.1 billion annually, 87% of which is supplied by parents. Add that to the $15 billion a year spent on TV advertising to kids, and the chances of our preteens developing some very unhealthy spending habits risers dramatically.
Some of the advice they offer is:
- 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; and
- 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.
Schwab also has a site to help you raise financially responsible teens that provides guidance on topics like budgeting, saving, credit, buying a car, leaving home, and taxes. You can find that advice at Schwab MoneyWise
Photo Credit: hugovk