Do you remember what your parents taught you about money? Did they address it responsibly or was it a topic that really never came up?
For many parents, it can be hard to try to explain what good money habits are, especially if they don’t practice what they preach.
Here are some ways that you can teach your teenager to be more responsible with money, as well as with credit. [Teaching kids about money]
Teach By Example
There are many adults who don’t know how to manage their money. Before you can begin to teach your teenager about money management, you’ll need to get your own finances headed in the right direction.
This doesn’t mean that you must be completely debt free, but if you have rotten spending habits, you may want to try and correct them before speaking with your teenager.
If you already feel you have good money management skills, then congratulations. You will have a strong base to draw inspiration from.
Keep Track of Spending
One of the first things your teenager needs to do is to keep track of where the money goes. There are forms available online that you can give your teenager so they can track every penny they spend for two weeks. Some teens will simply not do this because it takes too much time.
However, you may do this exercise as well to encourage their participation. Let your teen see where your money goes. They may get an eye-opener. After the two weeks, switch forms.
You both will probably see expenses that could have been avoided. It will also show your teen how much money they could have saved simply by avoiding the afternoon snacks out of the vending machines.
Should a Teen Get an Allowance?
An allowance is all right, but only until your teen gets a job. You should never give your teen enough money for them to get the items that are most important to them. This will help your teen understand that they need to save money for bigger purchases.
Once your teen gets part-time work, then it’s time to discontinue the allowances. Besides, they will have more respect for the money when they earn it themselves.
Should a Teen Get a Checking Account?
This will depend on whether you feel your teenager can handle the responsibility of a checking account. If so, help them open one. You’ll need to show them how to balance their checkbook each month. You will also need to explain the consequences for writing a bad check.
Building Responsibility and Working Is Very Important
It’s very important that teenagers learn money handling skills. Most teens are working at some point during high school. If they learn how to use their money wisely as a young teen, then they will have a great start on managing their money as an adult. As parents, you want to give your teenagers nice things.
However, it’s much better to let your child earn the money to buy many of these things by themselves. It won’t take them long to realize the importance of a dollar.