As a younger child, "Junior" or "Princess" probably saved up for shorter-term goals, such as buying a hot, must-have new toy. Now a young adult, the world has changed and they are ready for bigger financial goals–be that a new car, or college. While you may feel they never listen to you, the opposite is actually true when it comes to money matters. Today's young adults appreciate parents’ input regarding their finances.
Be A Good Example. They watch what you do. Your young adult will most assuredly be observing how you spend money. And if they see you budgeting a certain amount to save every month they will eventually do the same.
Get it in Writing. As part of the Spending & Savings Plan, have them put savings goals in writing. It makes everything more concrete.
Values-Based Saving. Encourage them to set goals that are based on his or her values, not on keeping up with what others are doing.
A Perfect Match. Motivate them by offering to match what he or she saves towards a long-term goal. For instance, for every dollar they set aside for that first car, you might contribute 50 cents or 1 dollar.
Saving for Retirement. Introduce your teen to the basics of a 401-K plan. Counsel them about Social Security and the importance of providing for themselves. This is a good time to talk about investing their savings by possibly opening an investment account (if they are a minor this will be a custodial account). Look for an account he or she can be open with a low initial contribution at an institution that supplies educational materials that introduces young people to the basics of investment terms and concepts.
Investing In Them. Possibly help them with a fun mock investment exercise. Just casually introduce your young adult to the business/investment section part of your daily newspapers or favorite online investment website. Together, do mock investments for companies that manufacture products they like. Monitor the stocks together.
When you have more time, here's some other great resources:
Rich Dad Poor Dad for Teens: The Secrets About Money--That You Don't Learn in School!
Street Wise: A Guide for Teen Investors
