Principles include: Starting early, giving an allowance and holding your teen accountable
BillMyParents, the teen payments solutions brand from San Diego, California-based Socialwise, Inc. (OTCBB: SCLW, Twitter: $SCLW), is focused on generating revenue by providing tools to help families manage teen spending.
Jim Collas, CEO & a founder of BillMyParents, recently wrote an article for FoxBusiness.com titled "Teaching Teens Money Skills: What Works and What Doesn't." The article is a compelling read for parents, with strong support of the BillMyParents prepaid debit card for teens as a main ingredient for success in teaching money skills to teens.
Life lessons about the value of money and appropriately managing finances can be difficult to instill in teens in today's fast-paced world. In his article, Mr. Collas stresses the need for adults to start addressing their kids' money habits early on.
The 3 main messages of the article include:
Start early, give an allowance and stick to it (personal illustration of Mr. Collas' experience with doing this with his own children)
Create an allowance budget (decide what the allowance needs to cover and work on budget together)
Make your teen accountable (best tool is a prepaid debit card with set spending limits, instant text alerts, and more)
Also included - and equally important - are things that do not work:
Bailing out your teen if they go broke (unless it's a true emergency)
Handing out cash (easily lost and notoriously difficult to account for)
Waiting too long to discuss spending decisions (talk over issues while they're fresh)
Not establishing guidelines (define at the outset and avoid confusion and arguments)
Mr. Collas concluded that:
"Kids need to learn to appreciate and understand the value of money and there is no better way to teach this than to give them money on a regular basis and let them make decisions about how to spend it."
After doing some due diligence on Socialwise and BillMyParents, what is particularly impressive is the company's approach to doing something positive for the overall financial future of families. The stock market world is known for creating market awareness and driving share value, but in the case of Socialwise, true benefits come from opening our children's eyes about financial responsibility and helping them establish good money habits from a young age.
This complete article was originally posted on Fox Business in the Personal Finance section here: http://www.foxbusiness.com/personal-finance/2011/02/08/teaching-teens-money-skills-works-doesnt/#ixzz1E9KfEBeP