Summer jobs can teach youth about money management

LEARNING GOOD money management skills at an early age will be a valuable asset once young people enter the world of work. Allowing your children to work at an appropriate age will also teach them the connection between work, earning a salary and money management.

It is a good idea for parents and children to sit down together to discuss how the wages will be used.

■ Determine how much from each wages should be put into a savings account. Parents can assist t he children t o open Treasure Chest Savings Account at credit unions. Five hundred dollars per month is all that is required for teens.

■ Work with the child to determine how much spending money he or she needs on a weekly basis and help them to make a budget for spending this money.

■ Parents should also encourage their children to put money into a savings account for their education. This money can be used for tuition or other educational expenses later.

■ Some parents believe that they are not capable of properly teaching their children to manage money. Here are other ways in which they can teach children indirectly about money:

1. Treat your own money with respect and let your children share that respect. If you bend to pick up a dollar, your children learn that even small amounts are to be treasured.

2. If you carefully consider the price of a purchase instead of just picking up and paying, you instil a sense of value in those watchful eyes.

3. If you count your change instead of just stuffing it into your wallet, your children learn to be careful with cash.

4. Let your children make money decisions from an early age. A few extra dollars of allowance can let the child learn the benefit of saving for a big purchase later rather than spending on small stuff today.

5. Make sure your child understands t he connection between work, salary and taxes.

While it is not necessary to share the entire family budget with your children, it’s never too early for them to watch you sort out your spending and investment decisions. Let them know that the hours you work translate into the dollars you can spend. Be sure to give them some idea that the Government takes a portion of your earnings in taxes.

Finally, make investments for children in long-term savings plans such as the Golden Harvest, and explain them to your children. This way you are teaching them the value of setting goals. The Golden Harvest Savings Plan allows for the setting of long-term goals for education, housing solutions and other necessities within a 10-year frame.