Materialistic attractions are bound to tempt young teens who are yet to understand the value of money. Teaching money management to children should begin at an early age. They should know the difference between what they want and what they need. However, parents should avoid endlessly lecturing their teenage children about this subject. Treating a teenager like a mature adult can have astonishing results.
Teaching Money Management to Teenagers
Make your child write down particular goals for the month. If you are giving your teen a specific amount of money as allowance, ensure he/she writes down the expenditures as well. Make them realize the importance of doing this as it helps develop planning skills.
Ensure that your child maintains his/her savings account. Allow a certain portion of the allowance to be spent as and how your child desires, but see to it that he/she puts away a certain amount every month into the account.
Give your teen a bit of financial responsibility at an early age. This will help them understand the value of money. He/she would automatically apply the principle to his/her own expenditures, and perhaps curb the unnecessary spending as well. This would ensure that he/she learns the ropes at an early age.
Many teenagers love to do part-time jobs. Such jobs are a great way for them to learn the finer nuances of expenditure. Encourage his/her ideas and help your child be responsible about the earnings. As long as it does not interfere with studies, there are many easy ways for teens to make money. This is a good time for them to learn how to plan for their future. They will also learn about accounts and bank-related issues.
Planning a monthly budget also helps when learning about money-related issues. Teach your child how to plan a budget. Make him/her note down the expenses and purchases for the month. Make this a habit so that he/she realizes where the money is being channeled and directed.
Avoid long-drawn lectures. You must relate with teenagers on a different level so that they do not feel like you are imposing something upon them. Encourage and understand their feelings instead of going on and on about these issues. Try a friendly approach as it is more effective.
Always ensure that your child knows the importance of money but does not get obsessed with it. In these times of tempting offers and materialistic things, teenagers are bound to feel the urge to spend. Occasional splurging is fine, but ensure that they see the other side of life as well.