Credit card companies have learned a phenomenal concept that if you teach people liberal spending habits when they are young and they are more likely to stick with it the rest of their life making their creditors rich and drowning themselves in debt. You can be approved for a credit card at a younger and younger age, and parents seem to be okay with it. It is time to step up to the plate as a parent and curb your teen's spending appetite. Teens love to spending money. It is your responsibility to make sure they get out into the world with sound principles of personal finance firmly in place so they don't land themselves in financial hell. Here are two tips to jump start your teen along:

Say No to Plastic

Do not introduce your teen to plastic. Credit cards, debit cards, and pre-paid spending cards all have one thing in common in a teen's mind: unlimited money supply. A teen does not learn how to live within their means if they can't touch, see and smell their means. Let them handle their money, but let them do it as cash. This teaches them several things. One is that when the cash runs out, it's gone, so they better start using it wisely. They aren't zipping a credit card that they never see the bill, instead they are getting the full impact of spending the only money they have. It also gives them the opportunity to really budget. You may want to give your teens a credit or debit card for emergency use, but kids tend to spend money on things that aren't really an emergency. If they have to handle emergencies with the cash they have on hand, it teaches them the value of an emergency fund and saving. Say no to plastic and help your teens really understand the value of money by doing all their transactions in cash.

You Want it, You Earn it

Teens should be introduced to the world of finances as soon as possible. If they want something, let them know they have to earn it, or in other words, make them get a job. Having a job as early as possible teaches responsibility, especially when it comes to money. Your teens are a lot less likely to be spend-a-holics if they know how much work they put in to get the money they are spending. A job helps teach them financial responsibility. If they want a luxury, you can help them out, but they'll appreciate the sacrifice far more if you allow them to earn it. Don't do loans. Loaning money to your kids only teaches them that it is okay to borrow for whatever they want. Make them earn the money for what they want up front and pay for it in cash. They don't have to work for the man if they don't want to. If they are interested in earning money, you can encourage them to go to work for themselves, which also teaches valuable lessons in responsibility and personal finance. If they want something, they should earn it, just like you.