Teaching your kid how to handle money is very important and you can start this at any age. But, the most delicate age is when your child is walking on the transition phase from teen to adult.
Teenagers are restless, moody, and rebellious, it’s all because of their hormonal changes, and we as parents need to understand their transition phase and guide their energy in the right direction. Guidance, lessons which you pass to your young blood at this age will make their life easy and more responsible.
1. Share your failures
No one is perfect, and I always mention communication is the key to any relationship. Before you guiding them on how to take care of their money and finances, let them know how you learned all this. Talk about mistakes you have done as a teenager regarding money, how you learned and what life lessons or financial lessons your parents passed you.
It’s not only about mistakes you made but also how you overcome or positive story from your good old days. Let them know how good or bad decision affects your and people connected to you.
2. Let them earn pocket money
It’s not at all important how much pocket money you give them every month, it’s all about how they get that money. Teach them to earn that pocket money from you. I consider pocket money as the first sweets plate of financial responsibility.
If it’s a plate full of their choice of sweet, let them earn that plate. Give them ask and tell them what amount they will earn after completion, which will make them understand the value of hard-earned money and they will feel happy and satisfy after completing and earning.
3. Let them learn to budget
Share with your child the perfect way to budget, let them know the importance of that hard-earned pocket money. This is one of the most important parts of the financial lessons. Today, every teenager has their own mobile phone, their social circle, and their choice of shopping. Tell them to make their financial plan with the amount of money they earn.
As a parent let them know how to handle these small expenses on their own, sit with them once in 10 days and ask if they want to show their expenses and saving for help.
4. Teach about bank accounts
My biggest and first financial lessons, I remember when I turned 13, my father gave me an amount and told me to go to the bank to open an account, I went there and returned as I was not carrying any papers required for opening an account other than cash which my dad has given.
I learned lesson how to open an account with all proper documents (papa secretly followed me to keep a check that I don’t do any mistake). It’s important for kids to learn by their own how to open account, get their passbook and other important papers. Trust me they will learn, feel proud and responsible.
5. Be a role model
Kids learn what they see at home, so practice what you preach. If you are someone who is telling them not to shop for unnecessary items and you are not following the same rule, then it will not help.
If you are telling them to have a budget planner, make sure you also follow your monthly budget planner.
Remember, you can really inspire your teenager’s brain, and they can do wonders.
‘This post is part of Blogchatter’s Blogchatter Half Marathon.’
© Ruchie Verma.
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Teenage is the perfect age to talk about finances. They understand things better when we give them real-life examples. And sharing our failures works great and it gives them a much clear picture about why it is important to take finances seriously.
Great tips Ruchi and being a mom of almost teenager, I could co relate with this. Yes, kids learn more from their observation rather than what we taught them. Being a role model is very important in all aspect of parenting and finances include it too.
Money being so important , it is imperative that children learn to value it just as they are taught to give value to education and relations. I have actually started these practices when they were just 8 and could add and count money.
You have rightly said that we need to share our experiences and failures with our kids so that they can understand and also express if there is failure by them. Making kids responsible for small accounts can help them build a habit to handle big accounts in few years.
These are some great pointers Ruchi. Kids imitate just what they see and learn from their parents so it’s important to keep our financial affairs in order to set a good example.
These are some really good tips you have shared. I have also written a similar blog sometime back. Teaching finance at an early age to kids is very good for their future.
Penny saved is Penny earned and kids must learn this through own experiences. You have mentioned nice tips.