When your teens start working and want to get their first car, move out, or simply spend their money the way it suits them, you, as a parent, have a responsibility to guide them through the process. If your kids become financially responsible young adults, you will be able to rest assured that you don’t need to intervene every month when they come up short. It is important that you sit down with them and explain how bank accounts, credit, and investments work, so they can make better decisions.
Saving for Rainy Days
One of the things that comes naturally with some kids and doesn’t make sense for others is saving. Encourage your teens to save money for things they really want, as they will learn to appreciate it more. Instead of getting into a debt at the age of 18 for a shiny new phone, they should create a saving plan. You might need to help them out with their first saving project and point them in the right direction when it comes to accounts, but once they have mastered this skill, you can be confident that you will not have to provide emergency funds and loans.
Taking Advantage of Discounts
It is important that you explain to your teenager that getting something cheaper than their friends doesn’t mean that it is worth less. Ask them to do their research and compare prices before they decide to buy. Whether they are looking for clothes or a laptop, you can explain them when it is the best time to buy, and where to find the right discount codes to save money and have a little bit left over for extras.
There is one thing that teenagers feel very passionate about, and that is their favourite brand. It is unlikely that you can make them switch to a cheaper make, but you can tell them about the benefits of couponing. They will be able to master this skill faster than you would think, as they are much faster researching the internet than you or your partner. You can show them your method, but don’t be surprised if they find an easier and faster way of finding the discount codes they need to buy their favourite brand products at a discounted price.
Teaming Up with Friends
When it comes to things you don’t use every day, you might not want to invest a huge amount. When your teen is thinking about getting a software, game, you can tell them that they can share it with their friends and save money. If they are starting a band and need a studio, they can all put money towards the rent, so they are not coming up short. Likewise, when they plan a trip, they can share a tent or room, and save money.
Self-control is something teenagers are not famous for. However, controlling spending at a young age can help them manage their money better in the future, when it really matters. Explain them that if they buy a phone on a contract, they will end up paying much more less. Encourage them to buy the device by saving money, then Save money with Mobile Phone SIM Only Deals so they will always know how much they have to spend each month. Look for a capped contract to help them stick to their budget.
Creating and Managing a Budget
Budgeting is a skill that should be taught in high school to every child, still most teenagers have no idea how to manage their income and outgoings. To make sure that they don’t overspend or face serious debt and cashflow trouble, you need to sit down with them to show how regular expenses and incomes are recorded. Tell them that the best way to control their budget is to record what they spend every time, and not to make emotional decisions about buying anything.
Maintaining a Good Credit History
Explain to your teenager that they will need to avoid debt and bad credit, and this starts with student loans and bank accounts. Tell them that if they learn how to manage credit and control their debt, they will have a better chance to get a good job, buy their own home, or get a car loan.
Parents can help their teenagers manage their money better by teaching them some of the above essential skills. From saving instead of getting into trouble to taking advantage of discounts and offers, learning to make a budget, there are several skills your teen needs to learn before they can become financially responsible adults.