Teaching your teenager (teen) about money
Adolescence is a time of independence and experimentation. In other words, it’s a time of infinite stress, late nights and slamming doors for all people unfortunate enough to be attempting to parent a teenager.
Your teen may not be giving you so much as the time of day at the moment, but providing support and being a good financial model will set the hellraiser up for life. After all, teaching your teenager how to be financially independent may be the quickest way to get them to move out after school and resume a semblance of normality in your day to day.
Here are some tips:
Make allowances
The general consensus from the blogosphere seems to be that allowances for teenagers allows them to develop independent decisions about how to use or save their money. How much, or even if you provide one, is entirely up to you. It’s important (according to parents, myself being much closer in age to teens that parenthood) to not just give an allowance, but to support it with advice about saving money and understanding the consequences of spending money.
Encourage them to sell
Selling unwanted items as a valid way to generate income if you are a teenager. Encouraging your teen to sell clothes they no longer wear or items they no longer use will give them a sense of moderation about purchases, as well as a bit of spare cash to save.
Assist them in finding work
Job-hunting is stressful, especially the first time. Don’t let your teen flounder without any advice; help them to write a resume and cover letter, and encourage them to call places they’re interested in working to see if they can offer any work.
Volunteering is also a great way to gain experience in an area, and will be invaluable in any job hunt. Once they have a job (which most teens have these days outside of school hours), help them draw up their first budget and think about a savings plan. Talk about what they want to save for- their first car, a trip overseas in a gap year, or higher education. Discuss long and short-term goals, and ensure they have realistic ideas about saving.
Save first
Saving first is a habit that’ll stand you in good stead for a lifetime if you can learn it. When you’re setting out the budget, suggest putting savings aside from an income first. If your teen has a phone, help them to understand the importance of paying bills on time and budgeting to accommodate expenditure.
It’s a scary thought
but your attitude towards money and spending behaviours will have a significant influence on your teen’s relationship with savings. As best you can, provide a positive example to your teen.
Instill a bit of old school frugality in your teen and talk to them about how to make each dollar count. Don’t send them out to the world as unthinking consumers; teach them how to be savvy about purchases and credit.
After all, it’ll probably save you money in the long run if they can handle their own finances, as opposed to constantly attempting to get a hand on some of yours as well.
How do you teach your teen about persona finance?
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