Students

Parents, Teens, and Money:6. Contracts: Know What You're Getting Into

  • Your teen will encounter many kinds of contracts and agreements as an adult. Here are a few items pertaining to contracts you should discuss:

  • What is a contract?

    Broadly defined, a contract is a mutually binding agreement between two or more parties to either do or not do something.

  • Signed, sealed, delivered — it's yours

    Make sure your teens realize that their signature is more than just an autograph.

  • Other precautions to take

    Tips your teens should consider before signing any contract or agreement.

KEY Message - Many types of agreements you enter into, both formal and informal, are considered contracts, with potential penalties for not meeting all terms and conditions. Always read any agreement carefully before signing.