Kids and Money: Take the Wasteful Spending Challenge

Not all teens are spendthrifts. In fact, 75% say they hunt for the lowest price, according to Mediamark Research. I attribute this at least partly to the high number of teens receiving an allowance: 60%, reports American Academy of Pediatrics.

Kids on a strict budget -- that's what an allowance should be; no bailouts -- act a lot like adults on a strict budget. Price matters, as it should. Still, teens often spend too much and on things they do not need. Here are the top 10 ways that teens spend their own money:

· Clothes This only sounds like a staple; check out the price of these designer jeans.

· Food Again, it sounds like a staple. But much of the spending in this category is on junk food.

· Candy No one needs it, although your dentist and his yacht thank you.

· Soft drinks See "candy."

· Salty snacks Just another name for junk food.

· Music Yes! We need music. But your kids might want to actually listen to a song before they download it and forget about it.

· Lunch You've got to eat. But you don't have to eat out, and if you're a college student on a meal plan you're paying twice for that to-die-for off-campus burger.

· Shoes See "clothes." Those Louboutins are anything but necessary.

· Video games Doesn't the kid need some fresh air yet?

· Jewelry Save the excessive bling for Notorious B.I.G. and his Gangsta brothers.

· Magazines Okay, let them have this one.

· Ice cream Even more junk food.

To make the point that we all spend too much, The National Endowment for Financial Education is sponsoring something called the Spendster Second Chance video contest. The idea is to upload a video where you explain how you feel about an item that you bought but wish you hadn't because it was a waste of money. I've got this crazy $800 cowboy hat I bought in Park City, Utah. Yeah, just try wearing that on the subway. What about you?

Why not do this fun exercise with the kids? You might win $1,000 and your family will definitely get in touch with its wasteful side. Note: the contest ends Oct. 28, 2010. Happy filming!

If you have a question about kids and money, I'll find the answer. Email me at dankadlec@dankadlec.com.

Photo courtesy Flickr user plasticrevolver

Dan Kadlec

Daniel J. Kadlec is an author and journalist whose work appears regularly in Time and Money magazines. He is the former editor of Time’s Generations section, which was written and edited for boomers. Kadlec came to Time from USA Today, where he was the creator and author of the daily column Street Talk, which anchored the newspaper's business coverage. He has co-written three books, including, most recently, With Purpose: Going from Success to Significance in Work and Life. He has won a New York Press Club award and a National Headliner Award for columns on the economy and investing.

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