How to Teach Your Teens to be Money-wise
How important is it to teach our teens to be money-wise? Teaching them the ways how to handle money matters would greatly affect their choices later on. Let your teens learn how to save smartly.
Teaching teenagers to set aside some of their weekly or monthly allowance might be a tough challenge for you. Teens are known to be happy-go-lucky and wanted to get everything. With a lot of peer pressure from others and hang-outs, for sure those weekly allowance budget will be gone in no time.
How important is it to teach our teens to be money-wise? Teaching them to develop independence in handling money matters can really benefit your household as well as their future.
We admit that the economy today is fluctuating, but the cost of everything is on the rise. We need to trim down expenses for those things that are not really necessary. We need an extra budget to cater all those expenses and be out of debt.
But teens are teens. Reprimanding them about saving money is a dark gray lining for them. They don’t want to do that. But when you think that your whole income is just enough for everyday expenses, you might think about changing your teen’s money habits.
- Talk to your teens about the money issue. They’re already old enough to understand the expenses you are making, especially when you are handling your family alone.
- Set your expectations and listen to theirs too and come up with a solution that could benefit both parties. Forcing your teens to follow you against their will because they don’t understand the situation won’t do any good. They will just shrug it off and go on with their way. They must first realize that you are working hard enough to provide them the necessary things that they need and there’s no room for anything that may be a waste of time and money like expensive gadgets.
- When they whine for one, but you can’t afford with the mere salary your family is making, let them understand that there are some things more important than having those gadgets like books and school supplies. Let them also understand that they’re still studying yet and won’t need high-tech gadgets.
- Instead of giving your teens what they want, teach them how to save extra money to get it. It will be a challenge for them since they don’t have salaries. It is your chance to guide them how to save by giving them their own ‘salaries’ when they do something good, they excel on school or do extra chores around the house.
- When your teen understand the hard-work of saving money, they will learn to live practically and going first for their need rather than their wants.
- Open a savings account for them and explain the benefit that they could get when they have more savings. Learn how much money you have to maintain to gain interest. In that way, your teen will be inspired to save some of their allowance for savings account especially when you are setting a goal for them reach. For example, once they reach a specific amount, they will get a reward, a picnic for the family, or shopping for things that they want.
- Be an example to your teens by just living within your means. When your teen sees you spending for things that you don’t normally need, they will think that it’s okay. They will think that they can just borrow money and spend it for what they wanted because their parents do the same. Instead, be an example by letting them see you save too even on glass jars and writing goals for that saving.
This is a very good example because children are inspired by what they see inside the house. They are determined to follow what their older sibling or parents are doing. They are motivated to save more for the things that they really wanted, and once they get them with their own hard work, they will become eager to save more and dream more.
Money comes and goes. But what you do with that, can benefit your family’s future as well. Don’t just rely on borrowing money from other people.
Teach your teens to be money-wise, and they will bring it whenever they go. They will succeed in life and learn how to live within their means and practically survive the course of life.