(ARA) - Kids always seem to be asking their parents for money. Whether it's an increase in their allowance, money to buy the latest tech toy or a cool outfit for school, one thing's for sure -- they want it. And the older they get, the more they want.

By the time kids reach their teens, they're spending an average of $101 per week of their own and their parents' money in 2003, according to a study by Teenage Research Unlimited. And the National Retail Federation reports that the average household spent $451 on back-to-school shopping this year.

With youth spending on the rise, when is it appropriate for kids to start earning money?

"Parents should start teaching the concepts as early as possible," says Suzanne Olson, editor and spokesperson for IHateFinancialPlanning.com, a Web site that uses humor to get serious about financial planning. "Home is the perfect training ground for kids to learn how to respect money, stick to a budget and make choices.”

To help your children get started on the road to financial responsibility, IHateFinancialPlanning.com offers the following tips:

Play shopkeeper. There are some simple games you can play with kids as young as 3 and 4 that will both entertain them and build a basic understanding of money. Use play money, and let your little shopkeeper place the sales revenues in a toy bank.

On trips to stores, talk to your young children about the basics of shopping for sales and using coupons. As soon as children show an interest in counting, you can use real coins and help them start learning how to pay for things we buy.

Settle the allowance question. Kids usually start to get a little more sophisticated about money between the ages of 9 and 12, when their desire to acquire kicks in. When it's real, not play, money they want, it's time to decide whether an allowance is appropriate.

Some parents believe in giving an allowance for household chores, while others think kids should do chores as part of family living. If an allowance is in your child's future, set your expectations. Decide if you'll permit your child to earn extra money above and beyond a weekly amount. And if you're unsure how much allowance to give your child, IHateFinancialPlanning.com has a suggested monthly allowance chart for children of various ages.

Ways to earn extra money. Be creative. Many of the ways to earn extra money that were around when we were kids may not exist any more. Sure, some of the old standards still apply: selling lemonade, mowing lawns, raking leaves, shoveling snow and painting fences. But there are other ways to earn a few extra bucks.

Your child could serve as a computer tutor for another child -- or even an adult or grandparent. Busy families in your neighborhood might welcome a plant- or pet-sitter while they're out of town. Other options include selling handmade greeting cards, cultivating a garden and selling homegrown vegetables, or helping out at a garage sale.

Jobs for teens. When kids are old enough to join the workforce in earnest, they may need a little help getting started. “With the job market so tough for teens this year, their first lesson could be that it's hard work to land a job,” Olson says. “That's a valuable lesson for anyone, and it's best learned sooner than later.”

Here are some things parents can do to help their teenager get started or continue in a fiscally responsible direction (translation: get a job).

Find out what jobs are out there. Word of mouth is one of the best ways of finding a job. Suggest talking to friends, relatives, neighbors, teachers and counselors. Point out help wanted signs in store windows, and news bulletin boards at libraries, community centers and neighborhood businesses.

Determine interests. Encourage teens to apply for jobs that fit their skills and interests. School or public libraries offer a host of information about jobs -- what they demand and the kind of training they require. Many have easy-to-use computer programs that match skills with jobs.

IHateFinancialPlanning.com also has a "teens only" section of its Web site designed to help them learn how to earn and manage their money, from determining what kind of job they want, to tips for successful interviews.

Help them balance their time. This is about earning a little extra money. It's not about sacrificing every ounce of their free time to obtain what they want. Help your child set up a schedule that allows adequate time for school, for work and for play. Sometimes kids over-commit themselves because they simply haven't yet learned the art of juggling their time.

Lead by example. There's a lot more to work than showing up. As a parent, model the work behaviors you'd like your child to develop. Stress being on time, dressing neatly, being courteous to others. When you come home from a rough day on the job, think about what message you're sending. Your child will learn a better work attitude if you demonstrate how to handle day-to-day setbacks in stride.

Track performance. Just as your employer tracks your performance on the job, set up a periodic review of your children's ability to manage their money, whether it's through an allowance, a part-time job or both. It's the perfect time to reinforce the positive behaviors and inspire your child to continue them.

Consider a financial match. "Helping your child learn financial responsibility isn't just about earning money. It's about managing it as well," Olson says. Open a savings or investment account for your child. Then offer to place a certain dollar amount in it for every dollar earned, not unlike some 401(k) plans. You'll not only encourage responsible investing, you'll also reinforce a concept that's often foreign to kids of all ages -- delayed gratification.

For other tips on teaching kids about money, visit www.ihatefinancialplanning.com.

Courtesy of ARA Content


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Courtesy of ARA Content