Teenagers are in the middle of big life transitions. It can be hard to be a teen in the modern age. Peer pressure is a major issue among the young crowd. Teens often feel pressure to purchase all sorts of things. If you’re a parent who wants to encourage your youngster to save money, then these strategies may come in handy for you. It’s important for teens to learn early about the value of saving.
Set Up a Savings Account
You should set up a savings account in your teen’s name. Teach him about how savings accounts work. If your teen has a bank account he can call his own, it may provide him with a genuine feeling of ownership. Give your teen pertinent tips that involve stashing money away in savings accounts for rainy days and beyond. In addition to savings, you should also set up a checking account, debit card and possibly even a low limit credit card so they can learn about using each of these properly.
Be a Fantastic Financial Role Model
Teenagers are impressionable. They often emulate the things they’ve seen their parents doing for ages. If you want to be a terrific role model for your teen, you should adopt smart savings practices yourself. Don’t let your teen ever catch you making frivolous, silly, and unnecessary purchases that you cannot explain. Remember that spending moderation is key.
Talk About Spending Openly
Open and honest communication can go a long way for parents who want to teach teenagers about spending. Talk to your teen about how it can help greatly to think twice prior to making any purchases. Tell your teen to ask herself if she really needs something prior to committing to buying it. Cautious thinking can often stop people from making purchases that are rash, thoughtless, and impulsive.
Encourage Your Teen to Get a Part-Time Job or Start His Own Small Business
Part-time jobs can build character in teens. They can also showcase the value of hard-earned money. Money often doesn’t seem “real” to teenagers who don’t earn on their own. If you want to discourage your teen from spending wastefully, it can help to motivate him to get a part-time position. If your teen works hard for hours and hours on end, it may make him think twice about blowing his paycheck on something he truly doesn’t need.
Unlike in previous eras, there are new options available to anyone (even teens) such as crowdfunding which is another option that can help people, starting businesses.
Saving money is never a bad thing. Parents need to teeth their kids that as early as possible. If you don’t want your teen to have to go through a lifetime of wasteful spending practices, you need to communicate sincerely with her.
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