Teach Teens Financial Success

Updated: Jul 12, 2021

“Start Young: Teach Teens to Save Money”


Parents mostly complain that teenagers do not listen to them. The opposite is true when advising regarding 'money matters'. Teens welcome their parent’s input about their finances.

In the past few years, teenagers have earned billions of dollars with part-time and summer jobs. Some have spent most of what they earned, while others saved most or even all of it for a big purchase, or for their college education.


Kids these days are becoming more and more aware of their family's source of income and financial status. They apply these money-spending principles when they venture out on their own. Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely.

 

Here are some ways you, as a parent, can teach your teens to save those hard-earned bucks:


1. Lead by example.

With your lifestyle, the children will see how you spend your money. If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep.



2. Help your teens get a bank account.

Establishing a bank account under their name would give them instant financial responsibility. Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough. Their savings could go to their college tuition or a big purchase like a car. Additionally, it gives them a sense of accomplishment once they have saved up, with something concrete to show for it. You may also check out the special benefits that banks offer for teens who open their accounts at such an early age.


3. Construct a “spending plan”.

Once they hear the word 'budget', teens tend to cringe at the thought of having to restrict the spending of their money. Instead, your teen son or daughter could build a “spending plan”. This would get them excited and think of ways they can wisely spend their savings.


Also, have them list their earnings versus their expenses. Let them know the difference between the items that they need and the luxury items that they want, which they can do without.



4. Make a “mock” investment in the stock market.

Make them aware of the options that they have financially. Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies that manufacture products that they like. Monitor the stocks together and this will give them another option of investing their money in the future.


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