Teens know a lot about money. At least, they know a lot about spending money. But few people know how to help their teenagers manage their finances, particularly when it comes to spending.
Last year young shoppers spent over $170 billion – double the amount just 10 years earlier on clothing, food, music, and technology (reported by 20/20). If that sounds outrageous to you, consider these facts:
- According to the JumpStart Coalition for Personal Financial Literacy, nearly a third of high school seniors reported having a credit card of their own or one co-signed by a parent.
- In 2010 alone, more than 110,000 Americans under age 25 filed for personal bankruptcy. (Elizabeth Warren, Professor of Law at Harvard Law School).
- 78% of college students have credit cards, according to student loan maker Nellie Mae. The typical student carries a balance of $3,200. One out of ten college students carries a balance of more than $7,800.
Here are three ways to control your teenager’s spending:
Make it Happen!
The Money Couple
Scott & Bethany Palmer