What High Schoolers Should Know About Money

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infomantional i like the facts but not the openning

Timothy Jones of LA 11:39PM June 21, 2012

Certain "chores" in a household are required for a household to run efficiently and effectively. I suggest that children not be paid for those chores, they should participate in those simply because they are a part of the household. There are a number of tasks however that parents may pay others for, e.g. washing the car, cleaning the carpet, raking leaves, lawnwork etc., and those items can be accorded a pay rate and the child can choose to do those or not for that pay. Some kids can enter your financial information into Quicken or other software program, clean out the garage, shine your shoes, clean the pool, park cars or be the hat check girl or guy at your party - you'll find something that they can do for pay. The task doesn't have to be un-enjoyable and in fact shouldn't be. The point is to get youngsters to understand that for most of us, one has to work to have money. Once they earn the money, it is theirs. Parents should use the years that children are at home to help them learn the value of money and make the right choices. The cost of those early lessons are much less expensive than after they have left the nest.

Jay of TX 7:03PM November 02, 2011

@Adam - Does anyone actually believe there is a way for a teeanger or a pre-teen to earn money that they would actually consider fun? I don't see the harm in paying your kids for chores, if they have reached a certain age, since its the only way I can think of that they actually get some money experience. Are we supposed to wait until they're 17 or 18 and then try to educate them since they are trying to get jobs? My son, who is 13, has been getting an allowance since he was 10 and its about $30 a month assuming his school work and chores are done and I don't think its excessive or mis-used. In fact, since he has his own money and does a decent job of saving it, he pays for his own movies when he's out with his friends and the aircards he needs for his Tracfone cell phone. I try to give him a taste of money experience, like with the Tracfone phone, where I let him make the decision, save the money, and help pay - these little prepaid phones only cost about $15 or $20 so its a tool I see to help him learn to save and spend. I don't want him at 18 to start wondering how to save money - I want him to already have some.

Zoe of FL 10:30PM May 30, 2011

Alpha Consumer:
Another reason why kids shouldn't be paid for chores is that at an early age they make the association work isn't fun. Maybe a small minority find doing laundry to be fun....or the dishes or vacuuming, but the majority of us HATE it or at least don't find it enjoyable.
I do think rewards for good grades are acceptable though...when you think about it, a merit scholarship is paying you X dollars per year to maintain a certain GPA. My good grades in high school (and my ability to maintain them in college) meant my college paid me 17,500 dollars a year for 4 years. That was roughly 50% of my tuition costs.

veronica of NH 3:03PM May 09, 2011

Great question Adam... I think your instincts are right to to try to make the feeling of saving enjoyable. I can share how my parents did it, and can tell you that it worked on me: Each time we saved, they matched the amount, up to a certain point (it was something like 100% for the first $100 each year and then 50% for the next $100, etc). Then, the savings in my bank account were carefully tracked in a notebook, so I could see the growth very easily. That provided some motivation. Then, I had a fun goal in mind (for me, travel in college). All that combined made me enjoy saving.

Kimberly Palmer of DC 1:52PM May 09, 2011

@ Adam: I'd suggest he make a list of goals. What he wants right now, what he wants in a year, and what he wants in 3 to 5 years. Divvy up the money that way.
Nice short term reward: ipad, gizmo or some gadget.
Next summer: a season ticket package to whatever sports team he may like....
3 to 5 years: Travel, or part of his college bill, etc.
Of course I don't know your kid and what he might like or dislike.

veronica of NH 1:52PM May 09, 2011

My son recently had his bar mitzvah and received a couple of thousand dollars in gifts. This limits my ability to urge him to save up for 'a big reward.' Any thoughts on how to expose him to the 'good feeling' of successful saving?

Adam of NJ 1:02PM May 09, 2011