The right way to give your teen an allowance

Here’s an idea: Hand your teenagers hundreds of dollars in one lump sum and leave it up to them to manage the money for the next, say, six to 12 months.

Anyone who’s ever had or been a teenager may quail at the thought, but experts say this approach actually can work much better than a weekly allowance in teaching older kids about personal finance.

In my latest for the Associated Press, how this unconventional method can work better than a weekly allowance.

Friday’s need-to-know money news

Today’s top story: Security tips from a former identity thief. Also in the news: What to teach teen about debt, tax mistakes you don’t know you’re making, and tips on retiring early. Ways-of-Identity-Theft

4 Security Tips From a Former Fraudster
Advice on how to protect yourself from guys like him.

4 Things Your Teen Needs to Know About Debt
Teaching your teens to avoid the debt trap.

7 Easy Steps to Pay Off Debt
Budgeting is essential.

7 Tax Mistakes You Don’t Know You’re Making
Don’t forget about tax credits!

5 tips to help you retire early
Treating dollars like employees.

Tuesday’s need-to-know money news

Credit card backgroundSurviving unemployment, the pros and cons of taking a personal loan to pay off credit card debt, and where your state ranks on the list of America’s most debt-free.

How to survive a job loss
Tips on how to get through one of life’s most difficult times.

Use Personal Loan to Cut Credit Card Debt?
Is trading one debt for another a smart idea?

4 signs of financial immaturity in teens
Could your teen already be on the road to financial ruin?

6 Financial Mistakes We Don’t Make Anymore (and 2 We Still Do)
What financial mistakes are we still making in the “new normal”?

The Most Debt-Free States in America
This list may surprise you.