As parents, we wear a tonne of hats and work so many important jobs that it’s easy to get overwhelmed at times. When our kids turn into teenagers, it’s like parenting a whole new child!
Once teenagers start making money, though, it’s time to have a talk. Not the talk, but a talk about smart money management. A financial advisor is just another hat you’ll wear in the day-to-day of parenting teens.
But where do you start with a topic like money? Well, consider the following four tips as the launching pad for discussing money management with your teens.
Teen savings account
Most banks have some version of a teen savings account. They’re not that different from a normal savings account, but they usually come with some budget tools, spending calculators, and other tools that help teens learn the basics of handling money. Setting up a savings account when your teen gets their first job is a great idea.
Let’s face it – budgeting is hard. How many times have you fiddled with the budget to justify buying those new shoes or that new purse? Budgeting is something we all need help on, but learning about it at an early age sets your teens up for financial success in the future. There are countless budgeting apps out there geared just for teens – and you may even find a few that help you, too!
If you could go back to your teenage self and give them one piece of financial advice, what would it be? If you said, “save for retirement,” you’re just like most other adults who wished they’d started saving for retirement much earlier.
Most retirement strategies include investing, and if you started as a teenager, imagine how much money you’d have at 40! You don’t need tonnes of money to invest, either. These apps are designed for people just starting with investing, and a few don’t even require a minimum deposit.
Let them spend
Do you buy all the clothes for your kids? What about gas and food for their dates, or even just their extra-curricular activities? That’s not a bad thing, but paying for it yourself removes your teens from the buying process. Instead of being the one to always spend money, give them a certain dollar amount for clothes and see how wisely they spend it. Once they realise the actual cost of new shoes, they may think twice about the name-brand versus a brand that’s on sale.
Parenting is tough, and handling money is arguably tougher. Doing both at the same time, though? Well, that doesn’t have to be a big problem. Do you have any tips for teaching teens about money? Let us know in the comments!