Secrets of Teaching Your Teen the Art of Money Management
You have witnessed your kids spend their childhood beautifully. Now, they have stepped into the journey of a teenager. This is a phase that comes with a set of great challenges. They will be spending less time with you. They will realize the set of responsibilities on their shoulders, whether they are in high school or college. This journey is a vital part for kids to grow and evolve. At the same time, you need to make them aware of the significance of money management. You can always say NO if the thing they are demanding is out of your budget, but that is not always the right way to do so. So for all the parents, it is the right time to teach them the art of money management.
If you are finding the ways to do so, you have come up at the right place. Read ahead and get all the answers.
Tell them to spend cautiously
Teenager years imparts full zeal and vigor in them. As soon as they get even a small amount of money, they become excited to spend it right away. Hence, make them understand that money is a valuable asset and, once spent, it is gone forever. Once they understand this lesson, they will become wiser while spending money.
Money management applications
Various money management applications let your child set saving goals. Some applications even celebrate smart money management by rewarding the kids up to a certain percentage of cashback. All you have to do is – get a debit card for teens and set flexible controls on them. Now, you can keep a tab on whether your teen is spending and investing the money intelligently or not.
Advise them to rectify mistakes
Teenagers are quite impulsive. Many times your kid will end up spending the money right within the 2-3 days, once they get it. There will be moments when they come straight to you after spending, asking for some more cash.
At that time, politely tell them to wait for some days so that they could learn from their mistakes. Your sincere advice to them to rectify their mistakes will go a long way in building financial literacy for them. Always make them learn about how to curb needless spending.
Make them earn it
Give your teens the opportunities to earn extra bucks with their efforts. You can make them do certain household chores to give them appreciation and rewards in the form of money so that they can redeem this money later. This will teach them that there is a strong relationship between hard work and money.
Your kids will not spend the money easily if they have earned it from the hard work. They may save this money for their hobbies like buying a video game or long-term goals like purchasing a laptop for college.
Takeaway
Educating your tweens about finances and money is not something that you can do in a blink of an eye. But it demands long-term efforts from the parents towards their child. Set a good example for them as a parent and prepare them for a financially bright future.
