I've often lamented the lack of financial education in our grade schools and high schools.
So many young people don't have good financial role-models to look up to.
Who is teaching your teenager about money and the importance of setting themselves up for a sound financial future? Here are some things you can do to plant the seeds of long-term thinking, patience and frugality that will lead to wealth over time.
First, talk to your teen about the pitfalls of debt.
Don't be afraid to use yourself or another loved one as an example - for better or for worse.
Explain to them how credit works, how it affects a person's buying power, and how fees and interest can pile up.
Teach them to differentiate healthy debt from unhealthy debt.
Then show them how credit cards and minimum monthly payments are designed to keep them in debt for many years.
Most teens don't realize how quickly a person can fall into the debt trap - and they'll put this knowledge to good use when credit card companies start aggressively marketing to them in their college years.
Next, talk to your teen about investing.
It doesn't have to be a complicated subject; start small with interest-bearing bank accounts, bonds, and certificates of deposit.
Get your teen set up with a money market checking account and some fixed-term investments of their own.
These initial investments probably won't see high yields in today's economy, but they'll illustrate in real-life terms how investing works.
Finally, emphasize the importance of planning for retirement.
Imagine how well-off you'd be if you'd started contributing to a 401K and a Roth IRA when you first reached adulthood.
In fact, sit down and do the math - and show it to your teen.
Nothing gets them interested in investing like real dollar figures.
There are also stock trading games on the Internet.
The two of you could sit down and play together as a way to introduce your teen to the concept of the stock market.
If you've been avoiding talking about money with your teen because you think they'll tune out, think again.
Young people are more interested in money than ever before, and many of them see the value of accumulating wealth over time.
Pass on your financial wisdom to help cultivate a new generation of savvy savers.
So many young people don't have good financial role-models to look up to.
Who is teaching your teenager about money and the importance of setting themselves up for a sound financial future? Here are some things you can do to plant the seeds of long-term thinking, patience and frugality that will lead to wealth over time.
First, talk to your teen about the pitfalls of debt.
Don't be afraid to use yourself or another loved one as an example - for better or for worse.
Explain to them how credit works, how it affects a person's buying power, and how fees and interest can pile up.
Teach them to differentiate healthy debt from unhealthy debt.
Then show them how credit cards and minimum monthly payments are designed to keep them in debt for many years.
Most teens don't realize how quickly a person can fall into the debt trap - and they'll put this knowledge to good use when credit card companies start aggressively marketing to them in their college years.
Next, talk to your teen about investing.
It doesn't have to be a complicated subject; start small with interest-bearing bank accounts, bonds, and certificates of deposit.
Get your teen set up with a money market checking account and some fixed-term investments of their own.
These initial investments probably won't see high yields in today's economy, but they'll illustrate in real-life terms how investing works.
Finally, emphasize the importance of planning for retirement.
Imagine how well-off you'd be if you'd started contributing to a 401K and a Roth IRA when you first reached adulthood.
In fact, sit down and do the math - and show it to your teen.
Nothing gets them interested in investing like real dollar figures.
There are also stock trading games on the Internet.
The two of you could sit down and play together as a way to introduce your teen to the concept of the stock market.
If you've been avoiding talking about money with your teen because you think they'll tune out, think again.
Young people are more interested in money than ever before, and many of them see the value of accumulating wealth over time.
Pass on your financial wisdom to help cultivate a new generation of savvy savers.