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How to Teach Teens about Finances

Teenagers have a lot to learn about life. Learning is a natural part of growing up. If you’re a caring parent who wants your teen to make smart financial choices, you have to make sure that they have a terrific starting point. You can do so by educating him or her about all kinds of monetary matters. But you also need to be careful about what unconscious money messages you have instilled.

Watch Online Tutorials

There are plenty of great tutorials on youtube that go into the intricacies of finance. Look for video clips that were posted by trustworthy and reputable experts in the business finance field. If a teenager sits down and truly watches one of these videos, he or she will be able to get a grasp of business finance that can be a game-changer.

Give Your Teenager Books about Vital Business Finance Subjects

Literature can be useful for teenagers who are serious about learning about finance and business. If you want your teenager to get information that’s accurate and relevant, you should research business finance books that are particularly acclaimed. You can buy these books for your teen. You can also get them from your local library. Give your teen the opportunity to immerse himself or herself in the business finance universe.

Talk about How Business Works

Teenagers have to learn about how businesses and the stock market works. If a business wants to thrive, it needs to offer products or services that the market wants to buy. It also needs to be able to deliver these products or services at a price the market wants to pay. It also must be in a financial position to honor its financial obligations. You certainly don’t want to work for or invest in a company that can’t pay its bills. The ability to pay one’s bills is called “Credit Risk”.

Credit risk analysis is the method by which one calculates the creditworthiness of a person or business. In other words, it is the evaluation of the ability to honor your financial obligations. The audited financial statements of a large company might be analyzed when it issues or has issued stocks or bonds. Or, a bank may analyze the financial statements of a small business before making or renewing a commercial loan.

Request a Consultation with a Business Financial Advisor

If you’re serious about teaching your teen the ins and outs of business finances, it may be in your best interests to get a helping hand from a bona fide professional. Set up a consultation with a financial advisor who specializes in businesses. Ask this advisor to speak with your teenager at length about financial matters that relate to companies in the modern age.

Business finance can be a tricky subject for newbies. It can be a particularly tricky one for young teens who have not been part of the business world before. The sooner you teach youngsters about the business finance universe, the simpler things should be for everyone.

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