Most parents, in the Old School Model (check out the WealthQuest for Teens’ Parent Guide for details), think their teen has done something amazing if they make a donation to a charity or save for a really big purchase or put away some money for the future. Each of these actions is valuable and important for your teen’s experience with money, but what parents don’t realize is that their teens are capable of a FAR more sophisticated money management system.
Teens need to learn how to do these things AT THE SAME TIME. That’s what isn’t learned in the Old School Model. Then what happens is that teens become adults who can’t pay their bills, save for big purchases, grow their investments, and have some fun, too.
The Silo System is the perfect training ground for teens to get the hang of coordinating all of this at the same time.
These are the main elements of the Silo System, which teens can learn about in the WealthQuest for Teens online video/workbook seminar.
Consider the benefit of having your teen establish this habit BEFORE he becomes an adult. Wouldn’t that be the best way to prepare her for adulthood?
During the past 25 years that I have been teaching in the public school system, I can tell you without a single doubt, that having high expectations for young people to challenge themselves to accomplish is one of the greatest gifts you can offer the teens in your life.
Easy Action: Begin a money journal with your teen. Teach your teen to figure out his or her current net worth. Then, set a goal for updating this document routinely (Weekly? Monthly? What works for you?) and create a reminder system.
Remember to Pledge to teach your teen to be an excellent money manager! Vote “Yes. I will make the promise!” to let the world know that parents are doing their part to build a financially literate society!
© Your Teen’s Money Skills, Inc., 2012 All rights reserved worldwide.
With regards to parents, teens, and money, we are full of automatic responses, most of which don’t really make sense OR make a difference with kids when we really look at them. One example is BUDGETING. Budgeting your money is just like dieting—they both promise big results and they both ultimately fail because they don’t… Continue Reading
I admit, this one took me a while to get together! When I started to make my money work, I had NO IDEA how much money I had, where it was, what it was for, or what it was doing! Man, I wished I had learned to do this when I was young, before the stakes… Continue Reading
Sean Covey, in his book The 7 Habits of Highly Effective Teens, advises readers to identify those aspects of life that they can control and those that they can’t control. When teens are learning how money works and how to manage their money effectively, they move this area of life out of their “Circle of… Continue Reading
As parents and leaders, we want to do whatever we can to raise our teens so they are prepared to be happy, productive, thriving adults! And sometimes it looks like, once they are teens, there’s not much more we can do for them. We’re busy, they’re busy, and just holding it together on a daily… Continue Reading