Rae Lynn has a little more money than most
teens her age and a lot more sense—especially concerning
finances. Rae Lynn, 14, has income from several sources,
including Social Security, a weekly housecleaning gig
with a friend, and summer employment in a catering
business owned by a friend of her family. Her desire to
take violin lessons became hands-on instruction in Money
101 when her parents directed her to use her own funds
to pay for the $50 monthly fee and to purchase a violin
of her own. "She also wanted a fancier case than a
normal violin comes in. It seemed like the perfect way
to teach her to use credit and budget for ongoing
expenses," recalls her mom, Wendy Lawton.
Thanks to the music shop's no-interest lease
agreement, Rae Lynn was able to receive her heart's
desire. "Rae Lynn took care of making all the payments,"
Lawton says, noting, "The debt weighed heavily on her so
she worked to pay it off early. I think she paid off the
violin (and bought her new case) in about seven months."
Dollars and $ense
Rae Lynn's experience shows that teens have money and
they're spending it. According to Teenage Research
Unlimited of Northbrook, IL, teens spent $155 billion
last year, up $2 billion from 1999. If the idea of teens
spending a collective $155 billion in one year is
astonishing, think how that number could soar if more
teens could charge their hearts' desires with credit
cards.
Some are already doing so. Of the 2,030 teens
surveyed by Teenage Research Unlimited, 42 percent of
kids ages 18 and 19 say they have a credit card.
Meanwhile, 11 percent have access to a parent's credit
card, while another 30 percent express an interest in
owning one.
"I would never have given my children credit [or]
debit cards," says Nanette Snipes, who notes her
children were born and raised during the recession of
the 1970s. "They needed to learn how to handle cash.
They needed to see that when cash disappeared, there was
nothing left and no way to replenish it unless they
worked another week."
The more a teen knows about the realities of money as
a limited resource the better, agrees Carla Dupree, CPA.
"Young people need to know some real basics like the
difference between gross and net salary, paying taxes
and filing tax returns, and the importance of allocating
money for tithing, saving, and regular and special
purchases." Dupree contends that when youngsters pay for
their own monthly expenses, like book, CD, or video
clubs, they better understand the entire
purchase/bill/payment process.
The bottom line? Education is key to helping kids
steer clear of the debt dilemma. Attorney Brette
McWhorter Sember, author of Repair Your Own Credit and
Deal With Debt notes, "Children can begin to understand
about money from the time they are preschoolers."
Discussions, she says, should center around "how you use
it and how you get it," as well as the importance of
saving and working part-time.
When it comes to finances, Stephanie Gates
emphatically notes, "I don't play with my money." That's
just one of the lessons she learned in a college course
that allowed students to simulate stock investing. "I
lost my shirt," she explained, "because of an unexpected
trucking strike." That in-class lesson helped her to
avoid real-life financial problems.
She was fortunate. Many teens don't receive financial
information at home or at school. The 2001 Parents,
Youth & Money Survey found that only 21 percent of
students ages 16 to 22 have taken a money-related class.
Yet, 61 percent of parent respondents to the survey said
they believe parents and schools should share
responsibility for teaching children about finances.
At 20, Claude Henderson says he wishes he'd received
more training in handling his money. "I never got a bank
card until I was 18, and I went to the bank and did
everything myself." Noting that he's currently
"struggling with budgeting, but getting better,"
Henderson advises, "Sooner is better than later with
this issue."
Money Mentoring
Other than perhaps discussing the importance of
tithing and giving, most youth workers haven't tackled
the issues of financial accountability with their group.
Yet, it begs our attention for several reasons.
First, effective money management is good
stewardship. Better learned earlier than later in life,
such stewardship paves the way for future financial well
being. Left unchecked, money issues cause problems,
bankruptcy being the worst. A million Americans filed
for bankruptcy each year during the last decade. If
predictions hold true and economic conditions continue
to decline, chances are good that some of your kids will
face debt dilemmas in the future.
Second, with the downturn in the economy and consumer
confidence waning, families are beginning to address
serious budget issues. Perhaps this will make your group
members more open to sharing their experiences,
expectations, and fears. You can provide a beacon of
hope in these instances.
"There definitely is hope after debt," says
McWhorter. "The first step is understanding your debt
and facing it. Many people simply won't. Once you have
done that, you can organize your debt and decide how to
reduce it. It's also possible to get credit again even
after a debt disaster, such as bankruptcy."
Third, as the holiday season rapidly approaches,
perhaps now may be the opportune time to bring up money
matters with your youth group. Or, you may tuck it away
for a New Year's talk designed to help your teens plan
better for 2002. Whenever you approach the subject,
you're likely to spark a healthy debate.
You may also find out that more of your students
struggle with cash-flow issues than you thought. Others
may be like Louise Dumont's son, Alan, who has a big
heart and an even bigger problem managing money. The two
are often related. Once he ran up a $500 phone bill in
one month to keep in contact with a troubled friend who
couldn't afford to call him. Alan never considered where
he would get the money to foot the bill. He's had other
spurts of generosity that left him financially strapped
and in need of help himself. "Alan has a very big heart
and uses most of his ‘mistake' money to help others,"
explains Dumont. "Unfortunately he then often has to
depend on ‘help' because he doesn't really have the
money to give in the first place. We have stopped
bailing him out." The reason? Dumont recognizes that,
unlike her other two sons, Alan struggles with money
matters that need to be addressed now to ensure he won't
have financial problems in the future.
"Although Alan has been diagnosed with attention
deficit disorder," she says, "he has a genius IQ [so]
his difficulty in curbing his spending is not because he
isn't bright enough to understand, or because he doesn't
care what he does with someone else's money. He just
always comes up with some ‘reason' why his case is an
exception to our rules."
A Helping Hand
Talking to a teen about money may seem a no-win
situation. Many are clueless, and don't mind staying
that way as long as their needs and wants are met.
That's not news to you, right? And talking about money
can be touchy, but it shouldn't be a taboo issue. In
fact, you can provide a key influence in an area of
spiritual development that a kid's parents may not be
willing, able, or ready to tackle.
Some ways you can help include the following:
1. Set a godly example. When it comes to money, group
members will watch you closely to see whether you
practice what you preach. They'll especially watch how
you spend your money and whether you always use credit
for your purchases. Should a teen seem impressed by your
credit card, use that as a springboard for mini-talks
about the responsibilities of credit card ownership.
2. Help them live within boundaries. On recreational
trips or entertainment nights, set a maximum amount that
each student is allowed to bring. Some will balk, but
it'll serve two purposes: you'll help teens budget for
their entertainment, and you'll help ensure no rich
kid/poor kid attitudes crop up. Another option is to
limit the amount of money each teen may spend when
participating in group-sponsored gift exchanges for
holidays or birthdays.
3. Provide giving opportunities. Many groups
participate in mission trips or outreaches to the needy.
You can help your teens develop creative opportunities
to give that don't necessitate spending money. These
include used clothing and canned food drives. Your group
can also raise funds to give by sponsoring drama or
music programs, tithing 10 percent and donating up to 90
percent to the outreach.
4. Stick to your group's financial goals and
objectives. If you're sponsoring an event, stick to the
allocated budget and attempt to come under budget
whenever possible. Your teens will learn that it's
possible to stick to a specified spending plan.
5. Discourage borrowing. Teens will be teens and swap
money back and forth. And you may not want to be that
involved. But if you notice any that are always bumming
for money, it may be a signal that they have a difficult
time budgeting their money.
6. Provide resources. Invite a financial planner,
CPA, money management expert, or other professional to
speak to your group on money basics. Look within your
congregation (including among your teens' parents) or
within your community for individuals who are willing to
speak to your group at no cost. Also ask around for
print and online resources that you can provide your
teens.
7. Promote saving as a short and long-term objective.
One option here is to participate in the American
Bankers Association's annual "Teach Children to Save
Day," held in the spring. This is a program in which
local bankers talk about savings accounts and help kids
establish them. Find out how your group can participate
and obtain parental consent for that participation. It's
likely that parents will have to sign for underage teens
to open accounts, so plan accordingly.
8. Consider fun money-related activities. While debt
is not child's play, playing board games can heighten
your group's understanding of money issues. Old
mainstays like Monopoly are always popular. An option is
to check out Larry Burkett's site for some neat games
that teach stewardship. Let your teens foot the bill for
these games by planning/saving for the purchase.
The Payoff
Proverbs 22:6 encourages us to "train a child in the
way he should go, and when he is old he will not turn
from it." That Scripture is as true for money management
as it is for biblical instruction. The more training
teens have, the greater their abilities to get back on
track should a financial problem arise.
Youth workers can provide needed inspiration,
instruction, and resources in money matters. In the
long-term, kids will likely value these as much as they
do other parts of youth group participation.
Originally published in the Sept/Oct 2001
issue of YouthWorker Journal, copyright 2005, Youth
Specialties. Reprinted/used with permission.
