Children are entering the adult world today woefully unprepared for the responsibilities of life on their own. They struggle with managing money, paying bills on time, and succeeding at their jobs. Culturally, parents are conditioned to protect their children, so they tend to buffer experiences and prevent teens from facing adult choices until they are older. In American society, failure is something to be avoided and there is no value placed on the lessons that are learned from mistakes, so children rarely learn first-hand about cause and effect.
A century ago, children were married and having children of their own by the time they were teenagers. Teens today are still capable of taking responsibility for their actions and preparing for adulthood during high school, and parents can facilitate this process.
School is Their Responsibility
By the time children are in the 8th grade, they should be taking responsibility for their own schoolwork. Parents should not hound their children to complete work. Obviously, instilling a good work ethic regarding schoolwork starts much earlier than middle school, but by 8th grade students should “own” the quality and timeliness of their work so they understand cause and effect before they enter high school, where a poor grade can affect college prospects.
Student Employment Has More Than Financial Payoffs
Students should begin to think about viable employment by at least the 10th grade. Experience working with others and handling workplace conflicts is critical to developing the work ethic and job skills they need when they enter the adult workplace. Many part-time jobs can be secured by working as an unpaid intern first. Summer camp programs, park and rec departments, landscaping companies, and recreation businesses will often use free labor, and volunteering opens the door to an eventual paid position.
By the time students are 15, they should be working part-time in preparation for life beyond school, when they will have to juggle work and family responsibilities. Colleges like to see regular student employment on their applications because it shows dedication, responsibility, and maturity!
Checking Accounts Teach Budgeting
It is critical for teens to learn how to balance a checkbook and budget their money. "The financial world forgives the mistakes of children," explains Lewyn M. Hayes, assistant vice-president at Crescent State Bank. "It's important that they learn by trial and error before they turn 18 and start making choices as adults." [1] In an era of easy credit and payment plans, the temptation to spend more than they earn hits younger target markets every year, and it is never too early to teach teens how to resist those offers. Teenagers should open a checking account as soon as they start working, even if they are only babysitting, and should be saving 10% of their earnings.
Teens Should Buy Their own Cars
Purchasing a car can be the single most rewarding effort a teenager makes other than good grades and a decent job. The sense of accomplishment a teen feels when he or she saves money for a vehicle is only trumped by the first purchase of a house. Parents should not deprive teenagers of this milestone by buying a car for them. Saving for a car (preferably the entire time they have their permit) will teach them the value of setting a goal and achieving it by themselves and give them a shot of confidence. Teenagers should also pay for their own insurance – either their own policy or as a rider on their parents' policy.
Make Them Pay for Their Cell Phones
By the time a teen is working and making an income, he or she should assume responsibility for all cell phone charges. This cuts down on extravagant cell phone use because teenagers are more prudent about usage when they have to pay the bill.
Human children take longer to mature than any other species on Earth. During those 16-18 years, parents are responsible for teaching their children how to survive in the adult world. Developing good money habits and taking responsibility for their own financial well-being is best achieved by teens before they truly have to manage on their own so that their transition to adulthood has fewer speed bumps and considerably less heartache.
[1] Hayes III, Lewyn M. Personal Interview. Holly Springs, North Carolina, July 9, 2009.
