Teaching Teenagers Money Management
Teaching teenagers about the importance of money is a parent’s responsibility. It is an important life skill to be able to manage money effectively. Teens need to learn what the value of money is and should learn how to distinguish between needs and wants. Here are some tips to help parents teach the value of money to their teenagers:
Teaching Teenagers about Money
- Help your child formulate and write down financial goals for the month. This will make sure that he pens down his expected monthly expenditures. This may be helpful in making him realize the value of money and may help him developing planning skills.
- Make sure that your child has his own savings account. Allow your child to spend some portion of the money the way he wants to. Help him to put away a certain amount every month.
- Give a little bit of financial responsibility to your teen at an early age as this can help him to understand the value of money. It can make your child apply good financial principles and stop unnecessary expenditures at an early age.
- Today, many teenagers love doing part-time jobs and this can be a great way to teach them to spend their money carefully. Make sure that his part-time work doesn’t interfere with his studies.
- Remind him to write down his expenditures every month. This will show him clearly if he is spending too much money on certain things.
- Do not give long lectures on the importance of money; instead encourage him to take responsibility for his own financial management. A friendly approach towards teenagers can be rewarding.
- Make sure that your attitude towards money doesn’t lead him to an obsession with money.
- Peer pressure may lead teenagers to buy more things than they need. If your child splurge occasionally, don’t worry, but encourage your child not to spend his hard earned money on things that are unnecessary.