• A college freshman with a credit card in his name held an average of $2,038 in credit card debt during 2008, according to an April 2009 USA Today report. This report shows not only the importance of money management for teenagers, but also the importance of learning early. Teenagers have a variety of tools to help understand choices and repercussions of different financial decisions. Some of these tools get parents involved as well. For example, a monthly budgeting worksheet reviewed by a parent places the teenager in charge of his own finances, but holds the him accountable for decisions made.
  
  

Prepaid Debit Cards

• Prepaid debit cards provide opportunities for parents to teach teenagers financial independence and responsibility. One prepaid debit card in particular---the Pay Jr. Visa Buxx Card---is a card issued to teenagers from parents. This card allows teenagers to earn money by doing chores that are tracked online. When chores are completed, parents deposit money on the card and teenagers can manage it through an online interface where spending history is tracked and saved. This concept can be carried out with any type of prepaid debit card, but the Pay Jr. Visa Buxx Card makes it simpler and offers a unique experience.
  
  

Teen Checking Accounts

• Some banks allow teenagers to open up a teen checking account with the permission from a parent or legal guardian. Most banks give teenagers the option of getting an ATM card or debit card to manage the account and spend money. Online account management is also a feature provided by banks for teenager accounts. A teen checking account promotes financial responsibility and accountability since money earned from a job can be deposited into these accounts. The teenager learns to value his money's worth and learns how many hours or days it takes to build a sizable account. Checkbooks offered by the bank force the teenager to look at where he is spending money when purchases are deducted.
  
  

Investment Products

• Several different types of investment products can be used to teach money managemen as well as the principles of interest and growth. Set-rate investment products such as Certificates of Deposits (CDs) and savings bonds allow teenagers to calculate the interest growth on their money and enjoy the rewards after it has matured. Online discount stockbroker websites such as ShareBuilder or Scottrade give parents the ability to teach teens about stock-picking and other investments such as mutual funds and money markets. Teenagers learn to identify good versus bad investments and learn the principles of diversification. Most importantly, teens learn vicariously through their parents not to spend any money that they cannot afford to lose.
  
  

Budget Planners

• Budget planners enable the student to learn to account for money and spend enough of it in the right places. Online websites such as the Junior Achievement (JA) Student Center at studentcenter.ja.org and Charles Schwab at schwabmoneywise.com have interactive tools like budget planners and money management worksheets. These tools give teenagers the chance to see what they spend their money on regularly. The JA Student Center even provides a money management simulator that requires students to meet the financial obligations set forth in a particular scenario.