Make teens money savvy

Give your kids love and attention, but help them grow into smart money managers, too. That can set them up to be financially independent and secure in adulthood. Here are some tips:

• Set a good example. Let them see you paying bills on time, using coupons and seeking discounts, setting financial goals and working to reach your goals. Share your successes and lessons learned — such as the danger of credit card debt and the value of living below your means.

• Teach them how to budget their money. If they get allowances or earn money, help them prioritize their spending and decide how to use their cash. Have your teens contribute toward major expenses such as their car insurance.

• Show your teens how to comparison shop and save money. Introduce them to savings apps such as Shopular, Yroo, Shopsavvy, Krazy Coupon Lady (KCL), Retailmenot, Buyvia and Flipp. Discuss ads and commercials they see, pointing out how marketers are trying to persuade them to buy.

• Consider part-time jobs for teens. A job will offer some spending money and can also teach them about the value of time and hard work. Something they might want to buy if their parents were paying for it may seem less necessary when they have to work many hours to earn it.

• Open Roth IRAS for your teens once they have earned income (contributions can come only from earned income). Learn much more about IRAS at Fool.com/retirement.

• Avoid getting credit cards for teens — at least until they’ve demonstrated a high level of responsibility. Paying with plastic can seem less real than paying with hard-earned cash, encouraging some to live beyond their means and rack up debt.

Your teens can learn much more in “The Motley Fool Investment Guide for Teens” by David and Tom Gardner with Selena Maranjian (Touchstone, $16), and in “I Want More Pizza” by Steve Burkholder (Overcome Publishing, $9).