One great way to teach your teenager money management skills is to encourage him to get a part-time job while in high school. This is a great opportunity for many reasons. It will help him to learn the value of money. Money means a lot more when you actually have to log so many hours to receive a hundred dollars. Once your teenager begins grasping that the new pair of sports shoes he wants actually takes a two weeks worth of working; he will begin appreciating things differently.
Another skill that your teenager will learn is how to budget her money more effectively. Many parents decide to give their children a set amount of money to buy items such as shampoo, clothes, gas and items they need for school. If the children want to spend more money then they need to earn it. Your teenager may learn the value of shopping the sales, or realize that she does not need to have five different purses. Or she may become very could at budgeting her time, so that she can have a job to earn the extra money.
Many banks will allow a teenager to open a checking account with a co-signer. This may be a good experience for your teenager. You do take on the added risk of being responsible if your child overdraws, so I would approach this with caution. You may want to lay ground rules, or suggest using a savings account instead. If you feel your child is responsible enough, you can teach him to balance a checkbook, and use his account wisely.
It is important to encourage your teenager to save some of the money she is earning from her job. You may want to talk about a goal that the savings would go towards. For some teenagers this would be a new car, for others it may be their college education. You know your child best, and should be able to tell what motivates her the most.
A part-time job can be a great learning experience for your child. It is important that your child maintains a healthy balance with schoolwork, and still has time for fun. It will not be long before they will be working full-time.