Transcript
0:06
Hello. I’m Elsa M. from Quicken with advice on how to turn young consumers into smart consumers.
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Did you know that teenagers spend more than $100 billion a year? Children under the age of 12 spend $11 billion.
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How can parents teach kids to spend and save wisely?
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Once your children can handle basic arithmetic, let them help you plan a grocery shopping trip.
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Decide how much to spend and then ask for their help in getting the most for your money.
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Allowances are a good way to introduce kids to spending and saving their own money.
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Insist that they save a portion of it, and put it in a glass jar so they can watch their savings grow.
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When your children reach middle school, open a savings account for them.
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Explain how money in a bank earns interest on the opening balance,
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plus interest on the interest, a process called compounding.
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Children enjoy hearing that their money is working for them.
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Ask older kids to write a budget with your help. Then step back.
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Monitor spending but don’t manage it. They’ll learn from their own mistakes.
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When your children reach high school, open a checking or debit account for them.
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But saving should remain the operative word.
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By now they should start to grasp the difference between short-term saving for an iPod,
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versus saving for long-term goals such as college.
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Supportive parents raise informed consumers.
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For more information on budgeting, visit Quicken.com.
