- Emma Parker
- April 30, 2021
Teen years mean preadolescence, and this is the most crucial age when your children must start learning about budgeting. Some parents, having learned from their experiences, start to teach money lessons to their children when they are young in games and give them small responsibilities.
However, the others think teenage is the best time to teach money lessons because they are mature enough to take up financial responsibility. Even if you started giving some monetary lessons to kids, there are many lessons that you can give to them when they grow up.
They need to understand how money works – after all, soon they are about to move out and then they will have to make their own financial decisions. You can feel it quite tricky, but it does not need to be. Here are some of the tips to follow to give financial lessons to your teen children.
Even adults slip up connecting their financial decisions to their goals. Ask your kids to save money for a specific purpose. There are many moments when your children ask for money, for instance, they need it to attend a musical concert.
Ask them for the saving plan. Even though they rely on their pocket money, you should ask them to save money out of it for the concert. It will develop a saving habit in them. They will be able to set goals and make an effort to achieve them.
Encourage them to earn money
People understand the importance of money when they start earning it. As you know, soon they will have to find a job to meet all of their expenses, you should encourage them to find a job now. There are various types of jobs they can do it.
Encourage them to get some work, and once they start earning money, they will be more motivated to make the most of it. Since it is their hard-earned money, they will understand its importance, and they will unlikely spend it for no reason.
Tell them the difference between needs and wants
Most people do not understand the difference between needs and wants. However, it happens because you fail to overcome your temptations. There is no denying that you may also have some bad spending habits, but of course, you will never want your children to develop them.
This is why it is paramount to tell them the difference between needs and wants. Ask them to give priorities to their needs. They cover their essential expenses like food, utilities, rent, and the like.
They should be told to ponder over how they can decide whether they should spend money on something or not.
Make them understand by actual examples. Sometimes you may think that it is essential, but it is not actually. The lesson of needs vs wants can help your children to have control over their finances.
Let them be independent
You may have been helping them out to decide between now, but you should stop it. They are almost grown-up. You should help them learn to make the right decisions. The best way is to allow them to take up some responsibilities.
For instance, hand money to them and ask them to stop whatever they need. If they are looking for a new cellphone, they should research it before going to the store. They need to understand what exclusively they want in their mobile phone.
For instance, they may need a phone with either high storage or high RAM. Guide them how they should shop a particular thing to make most of the money. Likewise, if they are to buy clothes, let them do it independently to ensure that they learn the art of being within limit when there is no one to control their behaviour.
This is extremely important to ensure that they will not keep using credit cards to purchase even those they do not need. Most people fall into debt and then take out installment loans for bad credit with direct lenders to improve their credit score.
Let them be fail
Your children can slip up even if they move carefully. They will make some mistakes – after all, it is just a starting.
You do not need to criticize for their mistakes. Let them learn from their mistakes. This will help them in the long run.
Teach budgeting and talk about money
Nobody wants to talk about money. It seems a terrifying subject. However, one of the significant reasons people run away from it is that they do not want others to know about their bad spending behaviour.
Well, leaving it aside, you should ensure your children do not commit those mistakes. You should talk to them to know how much money is essential to them and other values. You cannot get to know what your children think about money until you ask questions.
Encourage your children to create a budget. Even if they do not earn money, ask them to write down the daily spending out of their pocket money. This is a great way to develop a habit of tracking expenses in them. This can prevent them from overspending.
It is requisite to teach financial lessons to your children. Teenage is the best time when you can tell them the importance of budgeting, tracking spending and deciding over spending money now or later.