It’s never too early to start teaching your children about money. In fact, the sooner you start, the better. Why? Because good financial habits are learned. And, like any other habit, the earlier you start, the easier it is to develop them.
So, how can you help your teen develop good financial habits? Here are a few ideas:
Talk about money.
Make money a topic of conversation in your home. Discuss your own financial goals and decisions. Talk about budgeting, investing, and saving. The more your teen hears about money, the more comfortable they’ll be discussing it.
Give them an allowance.
An allowance is a great way to teach kids about budgeting. Help them set up a budget and then give them a set amount of money each week or month. As they get older, you can increase the amount of their allowance. But, be sure to give them the opportunity to earn it. For example, they could do chores around the house or get good grades in school.
Help them open a bank account.
Open a savings account for your teen and help them deposit their allowance into it. As they save more money, they can start to think about longer-term financial goals, like college or a car.
Teach them about credit.
Credit is a tool that can be used wisely or foolishly. Help your teen understand how credit works and the importance of using it responsibly. You might even consider getting them a credit card with a low limit that they can use to build their credit. Just be sure to monitor their spending and help them stay within their limit.
Encourage them to get a job.
A part-time job is a great way for teens to earn their own money and start developing good work habits. It’s also a great opportunity for them to start practicing financial responsibility. Help them budget their earnings and encourage them to save a portion of their paycheck.
Teaching your teen about money is an important part of helping them become a responsible adult. By starting early and having regular conversations about money, you can help them develop good financial habits that will last a lifetime.