Ways to Teach Thrift

Ref :http://moneywatch.bnet.com/saving-money/blog/bank-dad/kids-and-money-five-ways-to-teach-thrift/208

 Research firm Morningstar seems to prove the obvious - that when you shop for value you get the most reward. The fund study concludes, “In every asset class over every time period, the cheapest quintile produced higher total returns than the most expensive quintile.” The lower a fund’s costs the better its chances of earning an above-average return.

Here, are five ways you can teach your teens the value of finding value:

Put them on a budget.

Force your teens to learn how to manage their money by giving them an allowance and refusing to bail them out when they overspend.

Get your teens a low-cost reloadable debit card. 

Instead of handing them cash every week, load their allowance onto a debit card, like Wal-mart’s Moneycard. It will get them in the habit of using plastic responsibly and with zero risk of overdraft fees and living beyond their means.

Charge them for being wasteful. 

Leave the TV on after you’ve left the room — you’re fined. Keep the room air conditioner turned on full when you’ve left for the day — you’re fined. The size of the fine should be just enough to sting.

Set a good example.

Reuse Ziploc bags and plastic cups; clip coupons; make sure you turn out the lights. At dinner, talk about the new dish or brand on the table because it was on sale.

Encourage individuality. 

Challenge your teens to dress, act and think differently from their peers. Teens with a strong sense of self take pride in not following the crowd; they are far more likely to become leaders and far less likely to impulse spend on the latest gadget or clothing just to fit in.