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Saving versus SpendingThe Virginia Cooperative Extension recommends that oldsters allow their teenagers freedom relating to spending their allowances. Starting a savings account is the perfect way to encourage teens to avoid wasting their money, while allowing parents to help keep with the savings. When the allowance is made for discretionary purchases alone instead of essentials, remind your teenager once the money is dead, she will have to earn more through performing extra chores, taking money out of her savings, or borrowing funds on your side which is a habit little one encourage.