Five Ways to Teach Your Teen to Donate

Organizations behind the financial literacy movement largely overlook the benefits of teaching teens about charity. That's fair. Kids who don't learn how to budget and manage credit won't have any money to give away anyhow.

But we certainly want future generations to understand the value of giving -- from both a personal growth and good citizen point of view. So while you are teaching your kids how to put something away each month for long-term goals like a new Xbox or a car, you might also teach them to siphon off 10 percent for charity.

There's never been a better time for this lesson. Volunteer rates are up nationally, which is good. It shows intent; that we have a collective conscience. But a lot of charities have been starved for donations during the recession. They need money now.

Warren Buffett and a bunch of super rich folks are stepping up to provide a stellar example. Their pact between 40 billionaires to give away at least half of their fortunes offer a great chance to bring up the subject with your teens. If you need an opener, ask them if they've seen Star Wars creator George Lucas's latest idea. He's one of the rich dudes that have taken the Giving Pledge.

Okay, giving away millions when you have billions ain't all that tough. I get it. So take a look at what some extraordinary teens are doing to help others, and if you think that pennies don't matter check out the results of microfinance at Kiva.org.

If resources are just too tight, encourage your teens to volunteer; there are many opportunities for them. Otherwise, here, with an assist from the Case Foundation, are five ways to start them down the road to generosity:

Make giving a rule. You insist that your teens go to the dentist because it's good for them; insist that they give or volunteer for the same reason.

Buy one, give one. Require that for every new video game or cell phone they buy, they donate or recycle an older one.

Show and tell. While teens may see you volunteer and write checks, you should also tell them why you do it. This will help them make those decisions for themselves as adults.

Let them lead. If you let kids decide how to give their time or their money, they are more likely to enjoy it and stay with it.

Match their donation. While no donation is too small, if you match what your teens give you'll send the charity a more meaningful amount -- and your teens a more poignant lesson.

Photo by trackrecord from Flickr.

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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