$$$$$$ and your Teen

If you have more than one teen, you may have noticed their ideas of money are totally different.  New research is shedding a little light on the phenomenon. How one is cautious and careful, the other a risk taker when it comes to finances.

A group called Arizona Pathways to Life Success for University Students has identified three distinct money identities:  pathfinder, drifter or follower.  Founder, Soyeon Shim identifies that each behavior has its own pattern of strengths and weaknesses affecting what kids know and how they use it.  Overcoming the weaknesses ensures that kids can get their wallets under control and don't give into financial stresses that eat away at relationships and confidences.  "Financial independence is not just about money management," says Shim.  "It's about life management."

You know they're Pathfinders when.... they have all the money answers and tell you what to do.  They are the readers and researchers who won't hesitate to say what they think.  They probably had lemonade stands when they were small., loved selling items for school fundraisers and save money instead of spending it. As teens, they probably are already interested in jobs, investing and future careers.
Unfortunately, their enthusiasm may not match their ability.  APLUS suggests you build on their leadership skills by including your teen in financial decision making processes and offering chances to nurture your young entrepreneur's business skills. 

You know they're Drifters when..... they roll the eyes during financial discussions and are not interested in balancing or budgeting.  The drifter is a spendthrift and does not know the value of money and the relationship between earning it and spending it.  These teens usually just have a handout and expectations of an unlimited source (you) to furnish their financial needs.  If he blows his allowance, put away the billfold and explain that financial choices have consequences.

You know they're Followers when.....their money attitudes are merely echoes of your own advice.  They may be knowledgeable, but not confident.   Begin to give your follower teen opportunities to make their own decisions.  Talk about risks and consequences.  Be a teacher when you comparison shop or plan a large investment. 

It's important to remember, there is no "One size fits all" when it comes to the way teens learn about money.  Identifying which category your child falls into will be a start to effective financial parenting.  chrissie