Teenagers often learn about money through trial and error – some will succeed, but the vast majority will struggle with debt unless they become financially literate.

What can you, as a parent, do to help your child acquire money management skills?

• Start young: provide an allowance (it should be tied to simple chores around the house so that your child understands the link between work and money). Allow your child to make decisions on how to spend the money – try not to interfere; your role is to be the guide in your child’s decision making process.

• Encourage your child to earn money either through part-time work on the weekends (as long as it doesn’t interfere with school work) or through summer employment. Have your child make a list of how much is earned per paycheque and his/her needs and wants. This will help your child understand that there are limits to what can be done with a finite amount of money.

• Encourage your child to think about the future. How much will college, university, or trade school cost? What type of career to pursue? Career choice (and salary) will definitely affect one’s lifestyle.

• Use the Internet as a research tool to learn about financial concepts, but be cautious. The internet can be compared to a massive library with millions upon millions of data. The search engine is the librarian of this massive library – and a very incompetent one at that, because it will return to you every related item that matches the search criteria. You will often have to sift through irrelevant data to find what you are looking for.

These tips are simple strategies that will help your child. However, money management concepts are complicated and most parents do not have all of the answers when it comes to this topic. Net Learning Solutions Inc. is in the process of putting together a parent’s guide for those interested in teaching their child money management strategies and concepts. More information to follow in the next few days.

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