As an adult, convincing teenagers about anything can be quite a task. However, talking to them about money management should be a priority. They’ll thank you for it later!
As most teenagers would attest, the future isn’t something they’re overly concerned with. It’s all about the ‘here and now’ and ‘living in the moment’. How often do you come across teens talking about budgets, investments, and all that adult-y stuff? After all, your teenage years are all about blowing money rather than actually trying to save for the future.
This is exactly why you need to grab hold of your teenage kids and shake them out of their social media-induced stupor and teach them about the importance of managing money. Sure, they might throw a massive fit culminating in tantrums and slamming doors, but after all, it’s for their own good. Think of it as making them eat all their vegetables when they were younger.
While sitting them down while you explain the intricacies of financial management may seem like a monumental task, once you get through to them, you’ll certainly rest easy knowing that there’s a fair chance your kids will remember the advice you gave them once they fly the coop.
But what kind of advice should you give them you may ask? Well, here are a few financial tips that every teenager should be aware of:
How To Budget
The transition from the wistfulness of your kids’ teenage years to their adult ones can be a swift and bumpy ride, especially from a financial perspective. One moment your kids are having the time of their lives chilling out on a beach with their friends with your Credit Card in tow and a few years later rummaging under their sofas for spare change to pay their utility bills once they’ve moved into a place of their own.
Teaching your kids how to budget their money could be the best thing you ever taught them. Budgeting will help them allocate their income in a responsible manner by putting specific amounts aside for expenses, savings and investing. And with technology at the forefront these days, there’s no dearth of budgeting apps available online. This could be a fun way to entice your kids to take budgeting seriously since they’re glued to their phones all day anyway.
Credit Card Management
There’s a pretty good chance your teenage kids will eventually end up getting Credit Cards of their own. However, without educating them about how a Credit Card works and how to manage it well, it could lead to financial ruin.
Credit Cards are great financial tools if used responsibly. They can help you kids build their Credit Scores, manage debt on a monthly basis and even make them more financially disciplined. Teaching them how to make payments on time every month, how to use only a portion of their available credit limit and how to make use of the bonus points and rewards their Credit Card comes with will certainly hold them in good stead once they step into adulthood.
Additional Reading: A Stress-Free Guide To Managing Your First Credit Card
As with Credit Cards, there’s also a pretty good chance that your teenage kids may end up taking out some kind of loan after they reach adulthood. This could be a loan of any kind such as a Personal Loan, Home Loan, Car Loan or even an Education Loan.
Explain how loans work and get right down into the inner workings of a loan. Teach them how to calculate interest charged, what a repayment tenure is, what processing fees are, how to look for the best loan on the market etc. Armed with this knowledge, the chances of your kids making poor decisions when it comes to taking out loans later on in life will reduce drastically.
After all, knowledge is power and it’s up to you to impart as much financial know-how on your kids as possible.
Additional Reading: How To Get The Best Rate On Your Personal Loan
There you have it. Remember, try different ways to get your kids interested in financial management. Try and make use of technology as much as possible and do try and make it as interactive and as fun as possible so that their interest remains piqued.
If you’re looking for great financial products to clue them in on, look no further. We have an incredible array of options right at your fingertips.