In a few years, your teenager will be out of your watch and will be independent and accountable for themselves. It’s essential to teach them about budgeting at a tender age for the future. Their chances of overspending and accumulating high credit card debts will be minimal. It’s imperative to start the lessons as soon as they start their first jobs. Show them how creating a budget will help them achieve all their goals in the long run. Below are tips parents should use to teach their children about budgeting.
Teenagers are more prone to misusing their hard-earned money in a few days of getting paid. Show them how to create a budget and let them know how important it is to stick to the budget. They should also ensure they keep track of every expense they incur and avoid extravagant expenditures like impulse purchases.
Your teen might be excited about budgeting and setting financial goals. However, it is essential to teach them to set goals and work hard to achieve their goals. An average teenage dream would probably be getting the latest PlayStation for boys or getting the newest designer sling bag for a girl. Guide them on how to set the goals and how they should achieve them. However, it is critical to remind them to set reasonable goals considering their salary and the allowances.
Through budgeting and setting realistic goals, your child will learn how to leave within their means and avoid debts. Teach them about credit cards and how they should responsibly spend them. For a start, you can get your teenager a low-limit card and teach them to spend the amount of money they can afford to pay when it’s due.
Teach your children to put some money away for a rainy day. It will teach them to grow up being independent and responsible. Take them through the process of opening a free checking account. It will guide and encourage the culture of sensible spending and financial discipline at an early age.
In conclusion, kids learn a lot from their parent’s character, especially most teenagers. The best way of instilling knowledge and financial discipline is by practicing it first. When we are financially disciplined, our children will quickly learn from us, adopt the trend, and use it even when they are not under our care.
By Emma Sturgis