Teenagers who are just beginning to manage their own finances may find it difficult to understand the world of personal finance. Early development of sound money management practices can position individuals for future financial success. Here’s how you can help your teenagers learn proper money management skills:
Budgeting
Children pick up knowledge via experience and role models. This year, why not involve kids in creating a budget for school supplies? Discuss the impact of advertising on consumer decisions and the value of adhering to a budget. Prior to shopping, make a list and only purchase items on it.
Ask your kid to use a reliable budgeting tool if they have a part-time job or an allowance. They can use it to budget for dining out, shopping, social events, and maybe even savings for longer-term financial objectives like a car purchase or more schooling.
Banking
Teens can open bank accounts with minimal or no fees. When their account balance drops below $100, they will get electronic alerts. You are not required to sign up for the notifications, and this is a new regulatory requirement for banks. Additionally, you can adjust the cap to a value that best suits them.
Make it fun
Teens may develop their financial literacy, confidence, and abilities with the help of gamified apps, which are entertaining and interactive. On the website chatterhigh.com, which helps kids be ready for life after high school, there are two self-paced financial literacy classes. As they accrue points and win prizes, students learn fundamental ideas including budgeting and money management techniques.
Students in grades 6 through 12 can enroll in the first course, which covers subjects including credit and debit cards, saving money, and budgeting. The second course covers tools and resources that kids can utilize well after high school and is designed for students in grades 9 through 12. It addresses issues including taxes and funding options for higher education.
Learn more about these good money habits at: https://newscanada.com/en/How-to-help-your-teens-build-good-money-habits-135510
Reference: https://newscanada.com/
Image by katemangostar on Freepik
