Helping a teen learn about money, including the value of money and budgeting, is one of the most important things you can do as a parent, but it can be tough. It’s also something that parents may overlook when they’re raising their children.
However, focusing on money lessons with adolescents or teens can help them avoid expensive, damaging financial mistakes in the future. Learning about money is a lifelong lesson. So, what should you do if you’re trying to help your teen learn about money?
Money Saving Tips for Teens
Start with Gift Cards
If your teen doesn’t currently have experience managing money, using gift cards like a Myntra gift card, can be a good place to start. This may sound funny, but gift cards provide lessons about managing money and not overspending, without the same financial consequences of something like a checking account or a credit card.
If a teen goes over with a checking account or credit card, there are financial consequences.
Starting out with a gift card lets them dabble in budgeting, but in a risk-free way. Then from there, you can work with them to build on these skills further. One a teen has done well with gift cards, they can move to a debit card, with protection in place to prevent an overdraft.
Talk About Your Own Budget
A lot of parents feel like money and the family budget isn’t something they necessarily should talk about with their kids, but quite the opposite is true. It’s important for kids to see how much money it really requires to keep your family going each month. Transparency is essential.
When you’re paying bills and going over your budget, have your teens do it with you. Many teens don’t have a concept of just how expensive it is to cover monthly bills, let alone afford the extras.
Have Them Participate in Household Shopping
Another way to help teens with money is to have them participate in the household shopping for items like food and cleaning supplies. This shows them how much things cost, which can improve their idea of the value of money.
Shopping with you can also help teens learn how to plan and stick to a budget.
There are some great apps that you can use not only with teens but younger kids as well that focus on learning money lessons and budgeting. For example, there is an app called Chore Check. It’s more aimed at younger kids, but it lets parents assign chores to their kids, and then once those chores are completed, the child can request payment.
The child then gets their payment, and it’s up to parents to decide how much the kids can spend and how much they can save or donate.
Finally, the importance of setting aside and saving money is something that should be reinforced as much as possible. Teach teens not just how to budget, but how to budget in a way that includes putting money into some form of a savings account.