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.
- Play money
- Big ticket items
- Future financial freedom
- Contributions to make the world better for all of us
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.