Extracurricular Activities Will Help the Teenager Become Financially Responsible Essay Example

to pay each month, such as his phone bill. Whether your teen obtains his spending money from a part-time job or an allowance, paying a bill is important in financial priorities. Your teen will learn that before he spends his money on extracurricular activities, he must make sure he has enough money to pay for his cell phone or else service will get cut off.

Make sure the bill you give your teen is small and manageable. The idea is to encourage financial responsibility. Giving your teen an overwhelming bill will only discourage and instill a sense of hopelessness, which defeats the purpose. Budgeting is one of the most important aspects of financial responsibility.

Sit down with your teen and help them create a budget and how to stick to it. Often times young adults end up under a mountain of debt because they don't know how to budget their money. They spend money on extras before their obligations are taken care of and end up overspending. Helping your teen build credit should be done very carefully as credit cards are of the most popular ways young adults get themselves in trouble with finances. Before opening a credit card in your teen's name, make sure they first understand the basics of financial responsibility and have demonstrated the ability to handle money responsibly.

When choosing a credit card, choose the lowest limit possible. Five-hundred dollars or less is a good limit to aim for. This reduces the temptation for your teen and if your teen does overspend, he won't be able to rack up thousands of dollars in debt. Financially responsible teenagers will become financially responsible adults. These adults enjoy a better

lifestyle free from the stress of debt they will never be able to pay off. Responsible adults are less likely to need their parents to bail them out financially.

Now is the time to begin teaching your teen the ins and outs of finances and set them up for the best future possible.