Brought to you by Mike McCoy, Chairman and CEO of BillMyParents, Inc
1. Get an early start.
It is important for parents to get their children comfortable with managing their own money while they are young. This includes identifying needs versus wants, learning how to set and manage budgets, and learning how to track spending. The sooner parents give their children a chance to manage money, the sooner they can begin to instill important skills and responsible behaviors that last a lifetime.
2. Discuss spending decisions immediately.
While teaching teens how to set goals and manage budgets is important, it’s just as important for parents to teach day-to-day spending management. Teens are bombarded with marketing messages and peer pressure—these potential pitfalls only increase as they get older. Addressing spending decisions in real-time allows parents to reinforce smart spending habits while memories are fresh.
3. There’s no place like phone.
Over 90% of all teens and parents in the U.S. own a mobile device, and many successful parents now use these digital capabilities to their advantage. Using BillMyParents, parents can easily track spending and remaining balances, lock or unlock a teen’s card, and even send immediate emergency funds—all with the push of a button on their mobile phone.
4. Cash can’t do that.
A recent study showed 81% of all purchases made by teens aged 12 to 17 were made using cash or checks. However, cash can be easily lost or stolen, and once parents hand their teens cash, they have no real way of knowing where it goes, or even how much has been forked over in any given time period. Moving away from cash for allowances, spending money and special occasions funds is a great first step toward establishing accountability and better record keeping all around.
5. Plastic is good!
In today’s fast-paced world, it is critical for parents to find safe and effective solutions for their needs that are also convenient and useful. Prepaid cards are a great alternative to cash, and they do not come with the risks associated with cash or credit. The BillMyParents SpendSmart MasterCard is focused solely on giving parents the most secure way to manage money and promote responsible teen spending in a safe environment. The program allows families to stay connected and to keep communicating, one purchase at a time, before bigger mistakes impacting financial futures can be made.
For more detailed tips to help teach your teen(s) how to handle money—be sure to download the new, free eBook from BillMyParents: The 5 must-know, can’t-overlook principles Your Teen Needs To Understand About Money
Mike McCoy is the Chairman and CEO of BillMyParents, Inc.—The Responsible Teen Spending Company. Mike is the father of 3 teenaged sons who all use the reloadable prepaid BillMyParents SpendSmart MasterCard to responsibly manage their spending.
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