A well-known author laments in his best-selling books about how important it is to teach your children financial responsibility. He believes that a class on money should be required of all high school students. I agree. It may seem daunting at first, after all we adults struggle with creating budgets, staying under that budget, and trying to find ways to make our money go farther. But finding inventive ways to teach you teen the importance of saving money aren’t as hard as you might think. Being educated early about money has life-lasting advantages and teaches the importance of financial responsibility.
An important thing that a kid can learn about money management is to comparison shop. Learning not to buy impulsively not only delays instant gratification and teaches patience, it teaches your child how to be a smarter consumer. Often when comparison shopping ,waiting a day or two and catching an item on sale can save significantly on its cost.
Also as often as possible, insist that your child pay for “wants’ with their own money. Spending their own money from chores, summer jobs, babysitting, birthday gifts, etc. can in itself help a ten to decide if the purchase is worth it. If your teen is accustomed to having you pay for everything they don’t really get a sense of what it takes to earn money. So a job or the ability to earn money in invaluable when trying to teach the value of money.
Create a budget with your child is very important money managing tip. With advances in technology there are many apps that help you and your child get a grasp on what it takes to trim expenses. A budget helps to set guidelines for spending as well as saving. Creating a budget with your teen also creates an opportunity for you to explain the family budget as well.
Another way to ensure that your child will be a good money manager is to open a savings account to teach them the importance of starting to save early. It is a great incentive for your teen when he sees the balance of his or her account grow. You can also consider matching the funds in your teen’s savings account. This will be a major motivation for your teen to save. If they know that what they save will be doubled, they will be more likely to save as much as possible.
The final tip to help you teach your teen to manage money is to set saving minimums and spending limits. Allowing your child to spend a certain amount freely will also help them to feel more at ease saving a certain amount. This blog post reveals five known tips that will help you to feel better about your teen’s money management. Parents stress the importance of learning subjects such as reading, writing and arithmetic, but money management is just as important. Learning the value of being frugal is beneficial for even the most financially successful individual. So start teaching your child early the benefits of great money management.