AP9 Privacy Matters 123 Presents Tips on Money Management for Teens

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Norwalk, CT (PRWeb) February 10, 2007 -- It seems like parents and their teens always have important things to talk about - also known as "serious talks." These talks can be challenging and parents often don't want to follow through. However, parents should not be afraid of discussing money management and early financial responsibility with their teens, advises AP9 Privacy Matters 123, a leading program offered by Adaptive Marketing LLC that's designed to help members manage their credit.

The first money management opportunity comes with a monetary incentive widely known as an allowance. Most parents in the U.S. give their children a weekly or monthly allowance as a reward for good behavior, chores, responsibilities, or to simply teach them the value of money. PrivacyMatters123 believes the first lesson teens should learn about money is that even though saving money may not be as much fun as spending money, it is the foundation of financial success. The next lesson: Learn to invest it wisely.

Today, teens have access to more money than ever before through allowances, monetary gifts, and income from chores, summer jobs or part-time jobs. Teens are also expanding their horizons to online shopping or even selling - from school books to games, jewelry, CDs, etc. It is becoming more and more important for teens to learn to manage their income from an early age. Privacy Matters 123 provides parents with the following tips to get their teens started on the path to financial success.

Give an allowance that includes financial responsibility: Making sure teens take full responsibility for managing their own money is key. One way to do so is to make them responsible for buying their lunch at school or saving their money to buy that special something they have always wanted -- like their first car. Such responsibilities will help them learn to allocate their money to pay for some of their own wants and needs.

Open a savings account: Make teens aware that when they regularly put even a small amount of money into their savings account and leave it untouched for years, the results can be surprising. Through the magic of compounding interest, their savings and their interest payments will make their account grow faster than if they just left their money in their piggy bank.

Talk about investing young: Don't stop at a discussion about saving money - talk about investing money wisely. Teens (or anyone for that matter) don't need to invest big to see results. Some of the most popular types of investment options include stocks, bonds, and mutual funds. Teach them the pros and cons of each option then let the young adult make the decision of how much to invest and where to invest it. (If they're under 18, they'll need the consent of a parent or guardian.)

Teach them to spend less by shopping smart: Today, many teens are more concerned about designer labels than they are about the quality of the garments. But if they are committed to hard work and have developed a saving-conscious mindset, they should reward themselves from time to time. Every once in a while it is okay to splurge as long as they take care of their investment.

Help the less fortunate: Even though the primary goal of proper money management is usually to ensure a comfortable future, parents should also teach teens to give back to the community. They can choose whether to donate money or time, but community involvement can help them better appreciate what they have.

Some parents are financial experts for whom budgeting is second nature. But for other parents, money management can be difficult to handle and even harder to discuss with their teens. Still, it's important for their children's future that parents teach them how to save, manage and spend their money wisely. It is possible that "the talk" about money can end up being useful not only for their teens but for the parents as well, concludes PrivacyMatters123.

About PrivacyMatters123
AP9 Privacy Matters 123 is a leading security and privacy membership program offered by Adaptive Marketing LLC. Headquartered in Norwalk, Conn., Adaptive Marketing is a category leader in both membership and loyalty programs, bringing value direct to consumers through an array of benefits in healthcare, discounts, security, personal property and personals. Members may access their benefits at PrivacyMatters.com. With broad online and offline distribution capabilities, Adaptive Marketing offers its corporate client partners effective tools to enhance market presence, strengthen customer affinity and generate additional value through programs such as AP9 PrivacyMatters123.

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Publisher: Trina L.C. Sonnenberg