Teaching Teens Money Smarts 101

As parents it’s important to give our children the knowledge they need for a great future. With the current unstable economy in which we live in teaching teens money smarts is essential. Around age 15 open your teen a checking account with a debit card. This is an excellent money management training tool. It’s much better than a credit card and it will show your child how to properly balance money. Teach your kids to keep 40% of their money to buy whatever they want and save the other 50% of it in the bank. Suggest that they donate the additional 10% to a charity of their choice, cause, or church.

An estimated 79% of college students admitted that their parents never discussed money management with them. That percentage is extremely high. Stop the cycle of generational debt. Sit down and talk to your kids openly and honestly about money management. Some parents feel that since they are not in the best financial shape themselves they have no right to give advice. This is not true. As a parent you always have the right to give guidance. The fact that you’ve lived and made mistakes make you an expert in what not to do. Share your experience and financial knowledge with your teen. Teach them the right actions to take with money. Help your children set up their own financial goals and spending limitations.

Explain to your teen that money is not a solution to emotional issues. The consequences of wasting money and debt are serious. Show them that the best route to take financially is one that leads to future security. When your child finds their first job make sure they do not work more than 20 hours a week. Teach your child to save money and manage it correctly for a truly bright future ahead.