There was a huge graphic of a cell phone on the front page of the Sacramento Bee this morning. It was all about the love affair tweens and teens have with their cell phones confirmed in a study by Pew Internet and American Life Project.

If you have a tween or teen, this is not front-page news to you. But I thought it the perfect opportunity to re-print here a section from Raised for Richness, my parent kids and money primer:

Parents have been handed an unbelievable tool to help teach their tweens and teens money management. The cell phone. Yup. That object of love and hate. Done correctly it becomes an object of learning. Here’s how.

Teens need to stay connected to their friends. This is normal as they figure out their place in the world. Cell phones keep them connected. Using their “need” for a cell phone as the motivator, we can teach them basic money management skills such as budgeting, paying bills, and living within your means.

First, tweens and teens need to know that along with a cell phone comes responsibility. Keeping track of your cell phone, resisting the temptation to text during dinner, and paying your phone bill. Kids paying bills? You bet! And the best time to teach them is while they’re still hanging out with you. At least you’re not going to turn the heat off on them!

Next, it’s important to establish what part of the phone bill your child is responsible for. For example, you may pay the family plan fee but maybe your teen pays the additional phone line fee, texting, and any upgrades. If your child is old enough, you can even see if the bill could go go directly to her.

If you haven’t set up an allowance yet, this is the time to do it. Most kids don’t have jobs so it’s important to get money in their hands for the purpose of learning how to manage it. You can tailor the amount of allowance based on the responsibilities that come with it.

Now comes the fun part. Kids learn to manage their money in the context of something they love…their cell phone! Upgrades? They pay. Overages? They pay. New phone? They pay. Lost phone? They pay. Unpaid bill? No phone. See how simple it is? Okay, so it’s going to take a few months before everyone understands how the whole thing works, but when that happens, it’s a thing of beauty. Kids are happy; as long as they pay the bill, they stay connected to friends. Parents are happy; their kids are learning real life skills. It’s another win/win.

You may even find that your kids become pretty savvy consumers. Just how important is it to have the latest phone with all the gadgets? When it’s their money on the line, the difference between needs and wants takes on a whole new meaning! And that got-to-have-phone may be the perfect time to introduce them to the idea of setting a financial goal.

It’s true that some parents feel the peace of mind that comes with a cell phone is worth paying for the phone themselves. But wouldn’t you also want the peace of mind knowing that your child is ready to take on the financial challenges that await her out there? Don’t miss this silver-platter opportunity. With tweens and teens, they’re few and far between.

What are your thoughts?