Many teens these days don't have a concept of money. They don't understand the value of earning it or spending it. To be honest, a lot of adults still don't!
Most of us didn't have courses at school teaching us about personal finance. But that cycle stops with you. We, as parents play a huge role in teaching our own kids about personal finance.
First, aim at teaching your young kids how to save money. If they want a toy or electronic, help them save for it. Children and teens will do better in life as adults if they learn the concept of money and investment as early as childhood.
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5 Ways to teach your children how to save up
Teach them to count.
1. Your child can start learning about money the moment they learn to count. Be consistent and explain to them in simple ways and frequently so they can remember what they learn from you. Also, this helps them appreciate what you buy them too.
Teach them to save.
2. Try to explain to them the value of saving money as often as you can. Your child will understand the importance and how it will impact their lives the more you talk to them about it. Let them ask questions! Finance is not a dirty topic.
If you need inspiration or find yourself unable to answer, check out Dave Ramsey's "Smart Money Smart Kids". Here is an Audible sample.
Let them ask money questions.
3. Does your child receive an allowance? Give them their allowances in denominations. This way you can encourage them to keep a certain bill for the future. Motivate them to do this by telling them that the money can be saved and they can buy whatever they want once they save up.
My own daughter (12 yrs) often keeps saving even after she reached her goal. The more she saves the harder it is for her to spend it on anything ordinary. She wants to spend her money wisely on items or experiences that will bring her joy.
Will work for legos.
4. Now is the best time to start learning to work for money. You can start with small jobs around the house. Many parents don't like the idea of paying children to do chores they should do anyway. So be creative and delegate some of Your chores to them! This will help your child spend wisely, learn to save, and learn to appreciate what they buy.
A great book that covers everything from working for money and saving for money and more is "Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss", you can get a sneak peek here.
Have fun with piggy banks.
5. If your child is younger and crafty, get together, and build a piggy bank. These are great for them to drop their coins and cash until they are ready to spend. If you have older children you can open bank accounts for them and start teaching them how to bank. This comes in handy when they are out of the home, they will have to learn to avoid overdraft fees and such.
You can find some piggy banks on places like Amazon or Walmart. Here is an example of a great one for budgeting.
Luckily many schools around the country are starting to teach our highschoolers about personal finance. But the earlier they start at home the better.
You, Momma, are the one that can set them up for success later in life. Who knows, maybe they will be the ones to teach you as well as mine has. She has taught me about delayed gratification. I am very trigger happy when it comes to shopping on Amazon, but not her. She will wait until either she finds a better deal or until she finds something she'd rather have instead.
Thanks for reading!
Teen Checking Account
P.S. With the rise of online shopping and cashless shopping it may be easier to let your kiddo/teen open their own checking and savings account.
Just last month I opened a MONEY Teen Checking account at Capital One for my daughter. It's free to open and so easy to set up. Learn more about it here. This is not a sponsored deal or anything, I genuinely love it and recommend it.