Teenagers and Money

As we move into the 21st century, more and more teenagers have credit cards and more money available than anytime in history.
This, on the one hand is a good thing, because they can become more independent and act on their own.
On the other hand, managing their money might be a big challenge.
Most kids got their first money from their parents, before the had a job. They were excited because they could go out for dinner or to the movie theater with their friends or go shopping. If kids just get money easily, they tend to spend it faster because they do not know the value of money. They did not have to work for it. People who work hard for their money know its value and they are careful how and for what they spend the money. Parent's money is easier to spend than moneyfor which teenagres have had to work. Having a job makes teenagers more financially responsible. This responsibility is very important for their future. They have to know the value of money and what it means to plan ahead financially. Let's take college for instance, many teenagers have to make the decision where to go to college and how to pay for it. This is where saving money comes in. Teenagers have to make the decision how much of their money they want to save for college and how much they want to spend for their own pleasure. They need to think ahead and know what is important for them and the consequences of what they are doing with their money.
Many people have experienced the frustration of being broke due to frivolous spending. Being broke is not fun. So what does a person do when faced with bankruptcy? The easiest thing to do is to borrow money. As long as you pay back the money, you've learned your lesson, and you should be okay. But unfortunately not everybody realizes that. As soon as they get more money they spend it again, to the point where they can not pay back the money. It usually starts off with borrowing a small amount of money from a friend and if they say no at a point, the bank is the next to give the money. A lot of people spend more money than they have. They borrow money which they can never pay back to the bank. This not only has a bad effect on the debtor but also on the economy. If a lot of people act the same way, and are to able to pay the money back, the banks won`t lent any more money, which would lead to a financial crisis.
Hardly anyone pays with cash anymore. Credit Cards are very popular and most people do not only have one both big selection. Paying with a credit card has its advantages and disadvantages. First of all, you do not need to carry money with you, the small tiny cards takes care of everything. The disadvantage, as handy as it is, is that you can not control your money, and can easily lose track of how much money you have spent. This can lead to major problems. This so-called plastic money might be very handy if one can use it responsibly, but it can also be a danger. The way we pay has changed over the last couple years, one thing will never change, if you pay cash or with a credit card, you have to know how to use it, that means you have to know your limit.
These are all reasons why teenagers need to learn how to manage their money. And they need help. Schools have noticed that and offer "Personal Finance" classes at high schools. Not only students learn about saving, and dealing with money for now and the future, but they also learn how they can best use a credit card without, spending too much money and ways to always be aware about their money accounts. Everybody makes mistakes when it comes to money, but we have so many chances to change that. These classes are a good chance for teenagers to learn about money and how to deal with it, they should take this opportunity and learn about it.

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