For many teens, they are shocked to realize how expensive things are in the real world. After years of not being able to have a job, and then thrust into a world where they need to manage money, this can be a difficult transition. It’s important to teach your teenager about money to help them make more responsible decisions with their finances when they leave the nest. Here is how to teach your teenager about money.

How to Teach Teenagers About Money

 

Let your teen earn their money

Cut off their allowance and let your kids earn every cent that they make. This could be through household chores if they can’t have a job. Through babysitting, or let them get a part-time job after school. Letting your kids earn their own money will make them value it a lot more than if it is given to them.

Want more tips on teaching teens the value of money? Check this out!

 

Set up a bank account

Setting up your teenager with a bank account will not only help make it easier for you to teach them about things like using a bank card and making deposits, but you can also use it as a way to teach them about saving money! Help them get started with their own savings account, and about not losing track of money. Show them how to download the various bank apps and how to use them.

 

Teach them how to manage their money

Teenagers need guidance about how and where to spend their money, especially in a world of online shopping! Teach them about budgeting basics and what it means to manage their money well. If you trust them to have a credit card, you could even teach them about the importance of building credit while they are young.

 

Give them financial responsibility

It’s important that your teen learn that responsibility that comes with finances. This can be from paying for their own insurance, cell phone bill, or car repairs. It could even be teaching them about how to earn pocket money. These are important life lessons your teen needs to know and understand to be successful! If your teen doesn’t have a car, consider teaching them a money lesson by letting THEM by their first car. Let them save up the money for it, and eventually buy it themselves!

 

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Plant good money habits

Good money habits are something that is either taught or learned. Rarely will you find someone who is well off with their money because they got lucky. Teaching your kids about good money habits is essential to planting good money habits for their future. If they are used to setting budgets, saving money, and understanding how cash flow works, they will make those same decisions as an adult. By implementing these good money habits, your kids will be less likely to end up in debt, broke, or worse.

Want to know how to start? Check out this post and learn how to teach teens to budget.

 

These tips will help prepare your kids for a future of financial happiness and a better financial life and help teach them skills they will use forever! These basic principles will help foster a savings mindset and help them make better decisions with their money when you’re not there to guide them.

 

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