Helping your teenager get money-smart during their secondary years will set them up for life. Teens always have never ending demands. They surely know how money look like but don’t know how it is earned and quickly it goes. They think that money grows on trees and take you as all time money making machine. So learn the right way to let your kid spend less, save more and let your family manage the high cost of living.

To begin with, when it comes to teaching kids about money, experts say the sooner the better.

How can you help your teen?

You can help your teen become money-smart by

• Encouraging them to save for things they want in their own bank account
• Using everyday activities like opening bank statements or bills.
• Explaining interest – your teen needs to know that you can earn interest by saving, and that you pay interest when you borrow money or buy on hire purchase
• Being aware of money personalities – is your teen more inclined to spend or save?
• being consistent – if you’ve made a rule or an agreement about money, be decisive and stick to it
• Getting your teen into the habit of budgeting by encouraging them to keep a record of what they earn or get for pocket money and what they spend.
• Let them make mistakes. While it can be tempting to swoop in and save the day, let your child make mistakes with her money. Soon they will come to know about its value.

Age-by-Age Tips:

Under age 4

Practice counting with actual currency (steering clear of coins with really small kids).

Age 5 to 8

Take your child to your bank or credit union to open a savings account and learn about saving and interest.

Work on the concepts of choice and elimination. In a store, say, "You have this amount -- Decide what you are going to buy and tell me why you chose it." --- Avoid using potentially traumatizing language, such as “If we buy this toy for you then Mommy and Daddy won’t have enough money to buy food to eat.” It may be effective, but if you want a child who constantly asks you in front of your friends if you have enough money to buy food to eat, go ahead.

Ages 9 to 12

Have your child use part of his allowance to buy small gifts for family members, especially around birthdays or holidays. It could be as simple as getting enough candy to share at the store. This helps your child learn how to share, as well as budget.

Invite your child to sit with you occasionally when you pay the household bills, so she can get an idea of costs and how to use a checkbook or online banking system. Show your child how to read a stock or bond report.

Ages 13 and up

If your child has a handle on using cash responsibly, get a debit card or a secured credit card with a low limit. Then pay the bill together.

Plan how to save for long-term, big-ticket goals, like a car or higher education.

If your teen is working, show her how to file an income tax return and have a general discussion about the tax system.