(Step by step Money plans for teenagers. Six (6) money management tips for parents. Kids money management advice).

Money, the most powerful weapon in this modern world can do anything. It can make your life comfortable, beautiful and enjoyable. On the other way without money life can be worse. Do you know what money is? Money is everything- "Money is what money does".

As a concerned parent it is your most important task to give idea about the money to your child. Don’t think it is too early to teach or involved them with the money. It’s never too early to learn about the value of money and how to budget and save. After all they have to learn it in their life time. The earlier you can teach a teen about budget, save and earning interest versus paying it, the better they will be prepared to manage their own money.

There are different degrees of knowledge and liability a child or teenager can have regarding money. Here are few of the tips that parents should think to teach their children and help them to cope in this critical financial time.

1. Piggy Bank – Start with a piggy bank. Young children love to collect and save pennies. Encourage them to save their little penny into the piggy bank. At that time they don’t understand the value of savings but it will help them introduce with the word “savings” and it will be a good habit of them.

Children who get pocket money - instruct them to always put 10% of their pocket money in savings, another amount for charity, and then the rest is for their spending.

2. Introduce with the Family Budget – Engage them and talk about the family budget together. It does not mean making children feel guilty for costing you so much or worrying them about the bills. It’s very simple, just explain them that there is a certain amount of money that comes into the household and that there are some expenses, such as food, clothing, utilities that must be paid for from that money.

3. Introduce Family Savings - A set amount of money in every family must be saved for emergencies and future expenses. Introduce and illustrate to your child what the benefit of savings.

4. Open Savings Account

Children at the age of 11-15 years old may have the opportunities to earn some money (may be by feeding the neighbor’s cats). And it’s now time to graduate from piggy banks to the real world. Take the child to the bank and open their own savings account. They will be encouraged and feel like that they are now like Mom and Dad. Teach them again to put a percentage of their earnings or pocket money into the bank account. It will be more likely to become a lifetime way of managing money if the habit of putting money into savings each time they are paid is established early.

5. Check Spending

Help your teen create their first budget. Encourage them to note down what they will buy with their earned money.  Review their spending habits. With that info compare to your family budget to open their eyes as to how utilities, mortgage and other expenses actually add up.

6. Let them be Matured

At the age of 16 or older many teens have part-time jobs and learn the means to earn a living. Introduce them to the concept of paying taxes and teach them to manage a checking account and ATM card.

Give them the chance of buying their own clothes and other necessities. That will help them understand which one cost how much and learn how take better care of their belongings.

There are no alternatives of learning from the early life. As a Mom and Dad you can build up your lovable teen’s bright future with just a few steps of Money Management. Take care of your child.

Want to earn extra money? than read-

1. How to make extra cash without getting a second job? A recessionista guide.

2. Need Extra Cash?-Sell Your Body Parts