[uNkNowN ElEmEnt]

I am teaching my teenager about finanaces and would appreciate some input.

I am starting him with a budget on a spreadsheet so he can see really what kinds of things you have to pay in the real world and how a job from a fast food joint won't do it. I have listed some of the things he'd like, like cable tv, and spending money, yearly things like lift tickets etc. and the costs associated (for instance) with owning a car or a pet. (he's a cat lover).

I am also teaching him about the financial planning pyramid and making rules to show him. such as:
1. Never go into debt for something that is going to depreciate.
2. Never go into debt for something that won't give you a 'real' or tangible value (ie: school or a home)
3. never go past a 30% total debt ratio
4. never take on another persons debts (ie: give someone signing authority on credit cards or co-sign loans without expecting that you may have to then pay the debt off)
5. follow the pyramid of finance.
6. always pay your credit cards off each month.

Does anyone have anything to add, or know of a good way to teach him more, or anything???

[bratticus]

$this->bbcode_second_pass_quote('uNkNowN ElEmEnt', 'D')oes anyone have anything to add, or know of a good way to teach him more, or anything???

[RedStateGreen]

Watch the crash course with him.

[WildRose]

What I've told my kids is to save money - put some away from every paycheque, even if it's only $25. Now, I don't know where you want to put it these days - a bank or other "safe" place. The idea is to just pay yourself some savings before you spend all your disposable income.

Also, a simple thing I do when I want to curb spending is I just decide to try to get through the day without buying any extras - pass by the coffee place and go home to make coffee, pack a bag lunch instead of buying lunch out, make supper with odds and ends I have at home instead of buying more groceries. You can save quite a bit of money each month by just doing these things.

Of course, young people want to go out sometimes for dinner, movies, beer. But if they're careful with their money most of the time, they can afford nights out here and there, even on a smallish income.