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Back-to-school resolutions

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(BPT) - With kids across the country heading back to school, a common question at family dinner tables will be: “What did you learn today?”

Kids will be learning reading, writing and arithmetic as they head back to school, but what about lessons involving money? For most people, our relationship with money is based on our childhood experiences, and many children look to their parents for these important lessons. Yet, according to a recent Capital One survey of parents and teens, less than half of teens have worked with their parents to develop a budget for spending and saving their money.

As students prepare for a new school year, it’s a great time to start fresh with new resolutions around spending and saving. Talk to your kids about wants vs. needs, saving, budgeting, using credit wisely and other money management habits that can last a lifetime.

Here are a few ways to get started:

* Crunch numbers together and establish a budget. As your teen starts earning an income through a job or an allowance, ask him or her to pitch in and contribute toward purchases he or she might otherwise take for granted. Create a budget together totaling your teen’s contributions and what you can afford to contribute, and then stick to it when you head out to the stores.

* Only shop for what’s needed. Sit down together to make a list of what essentials your teen already has, what is needed and how much is budgeted for this shopping trip. This comes in handy for back-to-school shopping as well as the holiday shopping season.

* Do your homework. This is a good way to show your teen that homework extends beyond the classroom and well into adult life. Researching the items on the shopping list before leaving the house allows your teen to comparison shop, looking at prices and the quality of the items. For teens on-the-go, there are also a great deal of apps available that can easily compare pricing of items. And not surprisingly, you might discover your teen has different priorities than you when it comes to deciding which items to purchase. Only 22 percent of teens surveyed considered the price of an item to be the top priority, whereas 46 percent said style and appearance were more important. Run a calculation of how much money could be saved between the lower-priced items and the items on the “want list.”

* Set financial goals. Remind your teen to look beyond high school and discuss what items he or she would like to own in the future. It might be an electronic product, a car, paying for a future vacation, or helping to pay for college. The survey found that 83 percent of teens plan to attend college after high school, but 51 percent of those teens were not saving money to help pay for it. Help your teen set up a plan for how they will spend and save the money they earn or receive as gifts.

* Lead by example. Encourage good financial behavior by teaching your teen how to write checks, the use of credit cards and their associated fees and the importance of paying bills on time. Have them around the next time you pay your monthly bills, so they can see how much is spent on utilities, auto insurance and even food. This gives them a good picture for their future and how they might need to make financial decisions to cover essential expenses.

* Introduce investing basics. Open a custodial account and help your kids pick the stocks they like most. Contribute a portion of their allowance or agree to match your teen’s contributions, and watch the account grow together. Set monthly meetings to review investments, make changes and pick new stocks to purchase. Beginning the stock discussion early will empower your teen with the comfort and knowledge they’ll need when they are an adult.

By taking time to discuss spending, saving, budgeting and investing, you can help your teens save money now and point them in the right direction for a successful financial future.

To find additional financial tips as well as information on Capital One’s financial educational programs for teens and adults, visit www.capitalone.com/financialeducation or @TeachingMoney on Twitter.