Debra E. Schroeder, Extension Educator
University of Nebraska Cooperative Extension
Learning to manage resources is a fundamental task of life. From an early age, children begin to learn about the financial world from parents, peers and sales marketers. As youth enter adolescence, they are able to earn money through employment, allowances and other sources. Because they now have income, teens are already making financial choices and developing habits that may stay with them into adulthood.
Especially during early adolescence, decisions related to purchases are often influenced by peers and advertising. Manufacturers will spend a great deal of money to advertise brand-name products to kids in the adolescent age group. When a group of youth has a certain brand-name item, others want the same. For youth in their early teens, it is often the feat of being different that drives youth to place importance on wearing or having the "best" items.
As youth progress through adolescence, they think, more about future employment and saving for college. Their future goals will influence decisions about saving or spending. The amount of money that is "discretionary" - meaning they can spend it as they choose - also affects spending patterns.
Some teens become accustomed to spending their earned money on luxury items or wants. Problems then may rise in early adulthood, when they cannot afford to continue this level of living. It may be tough for teens who are used to having brand-name clothing or the best electronics to manage necessary expenses on a starting salary - unless they are willing to adjust their standards by purchasing generic clothing, for example.
While societal influences are strong, research shows that the family is the primary environment for learning about money. Children learn both the facts and the emotional side of finances from their families. Through their own habits, parents model financial behavior to their children. Parents also convey their attitudes and beliefs about money through discussion or lack of discussion about finances.
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