3 Tips for Teaching Your Teens About Money Management

 3 Tips for Teaching Your Teens About Money Management from North Carolina Lifestyle Blogger Adventures of Frugal Mom

Financial woes cause a great deal of worry for the average American. A report from a Texas healthcare facility noted that money is the top cause of stress in the country, which can lead to a variety of health problems. As the parent of a teen, you may be feeling this kind of stress yourself. However, giving your teens a head start with money management lessons in banking, saving, and credit card spending can help them avoid debt or poor credit as young adults.

1. Place Importance on Saving

Whether your teens receive an allowance or make money with a part-time job, teaching them about the importance of saving money can build good money management skills once they are adults. Help your working teens open a savings account and encourage them to put away at least five to ten percent of their wages aside each week. Help them set up a direct deposit into their savings and reward them when they reach a savings goal.

2. Discourage Credit Card Spending

Your older teens may want to start applying for credit cards once they turn eighteen. To help them understand the importance of building good credit, discourage them from applying for department store or specialty cards that carry high interest rates. Explain that credit card debt can spiral out of control quickly and that if they want a credit card, it is important that they perform a bit of research first to find the best interest rates.  Help them compare cards and encourage them to pay off the balance they charge at the end of each month once they start spending.

 3. Teach Them Discount Hunting

You can help your teenagers maximize their savings by teaching them how to hunt for discounts on services they use every day. For example, they may be able to save on their car insurance premiums if your local insurance agency offers discounts for having good grades or being on the dean’s list at college. Your kids may be surprised at how these savings add up.

If your teens have smartphones, show them how to find discounts for other goods and services with free apps. Many businesses offer virtual coupons and daily discounts, as well as rewards programs, directly from these apps, and they can offer major savings when your teens use them regularly. Have them ask their friends which apps they use, as some offer group deals, especially when it comes to saving money on entertainment.

Teaching your teens about money management can foster positive financial skills for the future. Learning early can prevent poor credit, money woes, and enrich your child’s early adult years. 

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