Teenagers are at a pivotal crossroads in their lives, when they’re not longer children, but not yet adults. Because this is a time in their lives when they’re learning, developing, and acquiring more and more information about themselves and the world around them, parents should make an effort to guide them in the right direction. One of the most important topics of conversation a parent should have with his or her teenagers is finances. This crucial aspect in life is seldom discussed as it should be, living teenagers to develop into adults that are not that able to adequately manage their money.
Following, we would like to present you with a list we have compiled of the top 5 things to teach your teenagers about money. Let’s take a look at the countdown.
No. 5: Talk about money and finances in a positive manner
Try to talk to your teenagers about money in a healthy way. Explain how having money can help you achieve your dreams, but teach them that it shouldn’t change your personality. Show them how we’re all just people under the same sun, regardless of how much money we have. It would also be a great idea to make them donate to a cause of their liking. This will show them that it is important not only to make money, but also to do good with it.
No. 4: Open their own bank account
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By the time your children have reached their teens, they should be mature enough to be allowed to hold their own bank account. You can open them a savings account, where they can deposit allowances, gifts, or money made through working. If you’re worried that your kid might not be as responsible as you would like him to be, you can keep joint custody of the account. Having their own account will give teens a sense of independence that will do wonders for their self esteem and financial skills.
No. 3: Teach them about money tracking
One of the biggest reasons why most adults will go into debt at one point in their lives is because they’re not really proficient at tracking their money. Prevent this from happening to your teenager, by showing them how they can keep track of their budget. You can use handwritten journals, Excel files, or one of the countless money tracking apps out there. Show them how you yourself track your money so that your teenager better understands what you are talking about.
No. 2: Talk to them about taxes
It is truly perplexing how many adults still have issues filling in their taxes. Make sure your teenager doesn’t become one of them by taking the time to amply explain them the process. Show them how you do your own taxes and encourage them to step in and help you. You can even give them a draft and let them do it completely on their own to see how they manage and how much they have understood.
No. 1: Encourage them to make their own money
Nowadays, numerous teenagers look for part-time jobs and it would be great if you were to encourage them in this process. Making money on their own will give them a valuable lesson on financial responsibility that will make them develop into mature adults. If you’re not that fond of the idea that your child will be flipping burgers, you can encourage him or her to make money through creative ways, such as writing, painting, or whatever else skills your teenager may have.
