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You have passed the teachings of potty training, how to share toys and basic manners to your child. Once your child becomes a teen, you now have to start teaching them about the real world and in the real world everything is based around money. Here are 5 ways you can teach your teen about the value of money:
1. Start early: It’s never too early to teach your teen about money. Teaching your teen about money is the best time because of all the real life lessons that are presented during these years. Your teen most likely wants to go hang out with their friends and that costs money like movies, video games, dating, and restaurant’s.
2. Allowance and a job: It’s up to the parent if you want your child to have a job during high school or not. If you choose to give them allowance or allow them to have a job, your teen needs to learn the value of the dollar and that one has to work for their money. If you choose to give you child a weekly allowance, make sure they earn it by doing household chores and helping out.
3. Credit Card: This idea is a newer one for parents to try out but a great idea for those older teens preparing for college. College freshman are bombarded with credit card offers and tend to get into trouble because the ease of a credit card. Allow them to use the family credit card to make purchases; this can be a part of their allowance. Set limits and rules to spending then monitor their spending and review the credit card bill with them. Show them how credit cards work with paying back and interest rates.
4. Saving: With their paychecks or allowance teach them to save a certain percentage. Explain the importance of having a savings account and why it’s needed. There are several reasons people start a savings account, for emergencies a big purchase or for their future. Savings for your teen could be for a fun, large purchase, car and gas or college spending money.
5. Spending: The most important factor of money that teens need to understand is spending. Young people don’t really understand the concept that once the money is gone, it’s gone for good. Allow them to spend their own money on whatever they choose. Mistakes will be made but allow them to make them. That is how they will learn. So let them spend how they see fit and prepare for lessons to be learned.
How your teen handles money in their adulthood will be a direct lesson from you as the parent. So educate your child the best way you can when it comes to money. You can save them lots of stress (and money) in their future.
Monta the mother of three children serves as an Expert Advisor on multiple household help issues to many Organizations and groups, and is a mentor for other “Mom-preneurs” seeking guidance. She is a regular contributor of “find nannies”. You can get in touch with her at montafleming6@gmail.com.