We’ve talked about simple ways to teach your children about finances but what about teaching your teen? This is a great time in life to re-hone some of the basic money saving strategies you taught when they were younger but on a larger scale. They’re more likely to have a job, have more items they are saving for and will soon be off on their own.
Here are simple ways to teach your teens how to be a better money manager that they will take with them through life and set them up for success.
Show how to save
While growing up, you may have instilled saving habits in your children for smaller items they want to buy, such as a candy or toy of their choice. During their teen years though, it’s important for them to understand what saving is like for large ticket times, like a car.
If you were going to purchase a car for your teen, try just paying for half or three-fourths of the vehicle. Then, your teen can save up for the remainder and learn the value of saving for something they truly want and need.
Assemble a Budget with them
It is important that your teens know the money they make through a paycheck, allowance or gifts needs to be spent wisely. Instead of giving them funds as needs come up, teach them to save the money they earn. And part of saving means a budget!
There are awesome teen budgets online to help you with this if you’re not sure where to begin. Remember, make sure to cover the basics of a budget; calculate your income (from work, allowance, etc.), what percent to place in savings each month, a list of necessities (like gas) and what they should allow for spending money.
Walk the Talk
Again, these are important to teach your teens because they won’t necessarily get taught all these skills in school. It’s helpful if they have a good role model to look up to with money management and finances; remember to practice what you preach.
If you’re compiling a budget with your teen, share with them an example of you budget for. If you’re having them save money for a car, share what you are saving up money for. The more teens see their parents practicing money management skills, the more likely they are to do the same.
If you have questions on budgeting or teen banking, visit us online at cornhuskerbank.com. We are happy to walk alongside you and your family through any stage of life!