One thing is for sure: as kids get older they become more and more expensive. Teens eat more, they travel more, they need more and more money for school, they cost more to insure, they are more expensive to buy gifts for, they like to go on expensive dates, they like to have expensive fun, and the list goes on.
So how does a teen make money? Helping kids earn money and learning money management for teens as early as possible can be a really good thing.
Which is more important? Work or School? On one hand working teens will get valuable real-life experience from working during school, but on the other hand school may end up taking a back seat at times if work gets in the way. Everyone's situation will be different, but a good balancing act between school and work may be just the thing.
What about safety for working teens? Parents should take an active role in their working teens' lives.
Teen debit cards may be a great alternative to getting a teen credit card. Sometimes mistaken for a teen prepaid credit card, debit cards are prepaid, meaning that the card holder (or the card holder's parents) "load" up the card with a sum of money. Spending on the card is then limited to the money on the card.
Should teens be allowed to have credit cards? The alluring convenience of credit cards is a double-edged sword that can quickly cause bad teenagers money management. Teens and credit cards is a topic that should be discussed between parents and teens to help ensure good teen money management.
Credit cards seem to be the number one reason for teen debt. According to Robert Manning, the number of incoming college freshmen with credit cards tripled between 1999 and 2002.
Nellie Mae reported that those freshmen carried an average of $1,585 in credit card debt.
Although it is difficult to know exactly how many teens have credit cards, because laws require that anyone under the age of 18 have a parent co-signer, it is apparent that more and more teens are succumbing to credit cards and the debt that so often goes along with those cards.