Reported by: Orllyn B.

Almazan

Many of families and adolescents today facing this kind of problem. In adolescent time that they can make small mistakes in managing their allowance. Part of being a adolescent is to be responsible managing money well. Financial problems can have many causes, and produce disastrous results when not handled promptly and properly.

Many adolescent and their families experience financial problems because some of them don't have good money management skills and make unwise decisions using their money. Uncontrollable factors such as buying unwanted needs (when shopping gets out of control), tantrum, addiction in several habits that need too much of money, emotional problems and stress that lead to irrational spending patterns.

Lack of guidance from the family of an adolescent can cause addiction, emotional problems and stress that lead to irrational spending patterns. Its effect the social and behavior of an adolescent in terms of interaction to other people around them, the way they communication to their family, in their studies.

In particular, numerous research studies have shown that children from economically strained households display more psychological, behavioral, and academic performance problems compared to children from financially secure households.
(e.g., Conger et al., 1992, 1993; Elder et al., 1985; Flanagan, 1990; Galambos & Silbereisen, 1987; Lempers et al., 1989; McLoyd & Wilson, 1990)

In response to their increased knowledge about difficulties in the financial situation, youngsters may feel overburdened with responsibility for their family's needs and emotional well-being. This heightened awareness and feelings of responsibility may be beyond most youngsters' coping capacity and ultimately, may result in risk for youngsters' adjustment.
(Bassoff, 1987; Glenwick & Mowrey, 1986; Wallerstein, 1985)

Adolescents tend to spend what they have right away thinking they will get more when they need more. If they need additional money for a purchase, teens even try to take out loans (an advance on their allowance from mom and dad or to their friends) so that they can buy the desired item now. Or to have a bale or to have a quite value of money from their company where his or her working.

Some factor thats why adolescent have this kind of attitude because of the influence of the peers that they have. the adolescent are tend go shopping to hang out with friends, purchase things they dont need and didnt even want before they saw it. They have little impulse control to begin with, but the peer reinforcement on mall trips adds to the problem.

For the parents; Try to teaching the teens to write a plan with money goals. They need to learn the process of figuring out how much income they will receive, what their ongoing expenses are, and saving the remaining amount. Talk to teenagers about your money decisions. Explain the difference between a want and a need, the benefits of thriftiness, and how you budget.

For the adolescent; set a goal for each money you have. A money goal is a wonderful motivator for an adolescent to save for a desired item or to create a savings for the future. When we look forward to getting something we want, make a plan to get it and then work toward obtaining that goal.

Try create a budget to eliminate debt and save money, determine your expenses will be responsibility to pay, determine the normal cost of each item and add those up to be your base amount.