$$$ signs probably light up in your teenagers eyes whenever you sit them down to talk about money. Teenagers seemingly need money for all sorts of activities and probably come bounding in your room asking for some at least a few times a week. Thus you understand that there is a real need for teenagers to understand the ins and outs of finances and savings.

First you need to help your teenagers understand your family budget and how they fit within it. You do not need to go into detail, but a cursory understanding of how much money is coming in and where it goes each month can give your teenager an appreciation for the money they use.

Second, you need to help them learn how to make their own money. Be it chores around the house or an outside part-time jobs, teenagers should be contributing to their own finances. Here are some ideas for job-hunting for your teenager: 

• Mowing lawns, shoveling snow, gardening, or other similar outside jobs 
• Summer camps 
• Tutoring other kids 
• Pet-sitting neighbors animals 
• Working for an elderly neighbor 
• Making websites for small companies or teaching others how to use computers 
• Babysitting services 
• Work at the local swimming pool 
• Sell your own arts and crafts 
• Deliver newspapers 
• Work at a golf course

Once your teenager is making their own money, strongly encourage them to save at least a portion of it. If possible let them use your money for their activities and have them save all of their money for future expenses such as college. Teaching them to save regularly will give them a financial skill that should serve them for the rest of their lives. Here are a few tips on teaching them to save and manage their money wisely: 

• Show them the math. Explain what will happen with their money the more they save. 
• Teach them to save a portion of their check as soon as they receive it. 
• Carry little money, it easier to spend cash then it is to write a check. 
• Explain debt and how it can affect them. Research some of the college they want to attend and give them rough numbers of how much it will cost them. 
• Tell them that in all purchases, not to impulse buy. Have them wait and think about buying things before actually buying it. That should save them from buyer's remorse. 
• Discuss credit cards. Show them how it is not free money and how interest rates can bite back quickly if they do not pay off the charges when they are due. 
• Periodically review your teenagers' account with them

Finally, teach your teenager the joy of charitable giving. If they can see how people without much live, then it can give them a greater appreciation for what they have. Using these steps can help you give your teenager a good perspective on finances and saving.  Visit the following link for more on student credit cards.

Teenage Finances Sources

1. Family Education, "5 Steps to Teach Your Teen to Budget," [online].
2. Family Education, "What Kids Need to Know About Credit Cards," [online].
3. The Motley Fool, "Teens and Their Money, Ways to Save and Make Money," [online].