H&R BLOCK: DOLLLARS AND SENSE

Three tips to help parents talk with their kids

(These are great tips for adults, too.)

1. Tell your teenagers to think before buying.
Advise them to take a few deep breaths and ask: Is this something I really need? How many times will I use this? Can I afford it? Determine if they are trying to fill an emotional need with the purchase. If you think this is the case, talk with them about what’s going on in their life. If they are purchasing to feel better about a bad situation or fill a void, brainstorm with them to identify other ways for dealing with their problems like going for a walk, taking a bike ride, watching a movie or talking to a friend.

2. Encourage your kids not to buy on impulse.
Ask them to put some time between the impulse to buy and their actual purchase. The old saying that "time heals" has merit in the world of personal finance. Sit down with them to talk about a spending plan and help them make sure they can afford it. Encourage your teen to wait a day or a week before making the purchase. It is amazing how frequently we think we "must have" something, only to see that it doesn’t matter to us tomorrow.

3. Model healthy financial behaviors.
Show your teens what it is like to save for a purchase. Decide on something you want to purchase and involve your teenagers in saving for it. For example, you may decide to save $100 a week—or a month — toward the purchase of a new television. Set the money aside in a jar, or note the savings on a ledger your teenagers can see. After all, if your teen only sees you buying without saving, what do you think they will learn?