There was a recent article in Kiplinger’s Personal Finance that spoke about having your teen manage the family finances.
Many of my clients and connections have teenage grandchildren, so I am suggesting have your teen child or grandchild perform this function.
- There is a huge lack of education in high school about money.
- You’ve already gone through the trial and error process and learned what works and what doesn’t.
- You may have purchased programs like mine, read books like mine, or gone to workshops like mine.
- While schools in eleven states require students to have a financial education class, I don’t know what it covers. And it is only 11 out of 50 states in the United States.
There are many financial lessons that can be taught to teenagers to help them develop good money management skills and prepare them for financial independence. Some examples include:
Teaching teenagers how to create a budget and stick to it can help them learn how to manage their money and avoid overspending.
Encouraging teenagers to save a portion of their money for short-term and long-term goals can help them develop good saving habits.
Explaining the importance of credit and how it works, and the importance of building a good credit history can help teenagers make informed decisions about credit in the future.
Introducing teenagers to the concepts of investing and the importance of saving for retirement can help them understand the benefits of investing and the power of compound interest.
- Financial Scams
Teaching teenagers how to recognize and avoid financial scams can help protect them from fraud and financial exploitation.
Explain the importance of insurance and how it works, it can help teenagers understand the importance of protecting their assets and their health.
- Career Planning
Encourage teenagers to think about their career goals and how they can prepare for them financially, including training, education, and investment in their skills.
It’s also important to lead by example and to have open, honest, and regular conversations about money with teenagers. This will help to create an environment where it’s ok to ask questions, make mistakes, and learn from them.
What are your plans?
To Your Prosperity,