Teens and the Economy

I was reading USA Today (the actual newspaper, not online) and came across an interesting article on teens and the economic crisis that we find ourselves in. Do you talk to your student about the financial side of your family? Judith Sachs from Parenting Teens Online says, after sex "money is the least favorite topic among families." But, after reading this article it looks as if this generation is ready to scale back on their spending. Some of the things reported on in this article surprised me (not much, but a little). Teens from a very economically well to do community said that packed lunches, part-time jobs and walking were in and that resturants, allowances and driving are out. Jim Taylor, vice chairman of the Harrison Group, which canvases young gamers for its market research says, "except for boy/girl relationships, the economy is the No. 1 topic with kids right now." Some areas in the country are seeing some kids actually competing to see how cheap they can get their jeans, or who managed to find an iPod on eBay. One student said that, "On the surface, your friends make you feel they're doing well. But I guess you see very quickly it's affecting everyone." This article spends some time talking about the concessions students are having to make and how reality is beginning to hit students who never had to worry about money. College funds are something that has taken a big hit during this time and some teens are realizing that helping out the family is the only way to make that dream come true.

Here are some tips USA Today gave on talking to teens about money:

1. Nix the Plastic
Plastic is not real to kids and cash is something that is real and reassuring.

2. Encourage employment
This helps the teen understand with it means to work for pay.

3. Explain yourself
Give them a reason why you're saying "no" to something they may have taken for granted.

4. Open the books
For older teens parents should consider showing the basics of the family's finance.