It’s no secret. Money burns a hole in the pocket of most teens. The list of stuff they want is long, and they tend to spend money as fast they get it. If that is the case at your house, don’t despair. Follow these tips to get your teens to spend less and save more.

Set an example

Spend every dime you make, and your teens will follow suit. It won’t matter how much you sock away in your retirement and savings accounts if they don’t know about it. Be more open about your savings habits and spend whatever you have left over wisely.

Dole out less

Buy too much for your teens, and you will reduce their need to save. The less your teens have to pay for, the more money they will be able to save, right? Not exactly. While they could save it, most will spend it. Financial responsibility is a part of life, and the sooner you start making your teens pay for some of their wants and needs, the less they will have to spend overall and the more they will value the dollar. Instead of spending money so freely, they will be forced to put back some of it for their “bills” and be less apt to part with the rest.

Encourage wise spending

Try to discuss saving without spending, and you will teach your teens little. It’s hard to become a saver when you have lousy spending habits. Should you go shopping with your teens and they see something they want, suggest they wait a few days before purchasing it. They may discover they don’t need it after all. To curb impulse purchases, suggest your teens make a list and bring just enough cash to cover what’s on their list. You can’t spend what you don?t have with you at the time.

Set up a savings account

Give your teens nowhere to put their savings, and you might as well tell them to spend it. The easier your teens’ savings are to access, the more likely they are to spend it. Forget the piggybank and open a savings account for each of your teens. Go over the mechanics of the account with them, emphasizing the interest compounded daily. As they become more adept at saving, you can look into other options, like stocks and bonds.

Match their savings

Give your teens no incentive to save, and you might as well be talking to a brick wall. Teens need motivation, and money talks. If you can afford it, consider matching a percentage of whatever your teens save. You will help their nest egg grow faster and keep them motivated.

Teaching teens to save takes time. Don’t expect to turn your spenders into savers overnight. Work with them through the process, and when they are ready, help them find a job. Allowances are fine, but for real savings, teens need a source of income. Encourage them to find a way to supplement their allowance, whether by babysitting, mowing lawns or waiting on tables. Just make sure that any paychecks received are automatically deposited. That way, your teens won’t be tempted to spend all of their earnings at one time.

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