Posts Tagged money

Teaching Money Matters With Your Teenager

Posted by Norbert Georget in Communication, Main Blog Posts, Parenting Tips on February 17th, 2010

Teens are all taught the standard reading, writing, and arithmetic. Most also have the opportunity to take elective courses as well as gym class and science. The assumption is that by the time they graduate from high school, they will be ready to face the real world and be out on their own. Unfortunately, the one place where teens are not being adequately prepared for reality is in handling money. What happened to the subject of teens and money? Why hasn’t it been included as required curriculum?

Education

There does not seem to be any formal education or class for the important subject of teens and money in high school or even earlier. We live in a society drowning in debt and most of the world continues to recover from economic upheaval, yet there is no standard high school teens and money course that established the importance of responsibly handling finances. Personal Finance classes that are available in high school that teach kids how to balance a check book, but as most adults come to realize quickly enough, there is much more to financial success than keeping a checkbook in order.

The question is, then, whose responsibility it is to cover the subject of teens and money? Certainly parents need to take the responsibility, but there should also be some responsibility within our school systems. Teens need to learn how to handle money, how to use credit responsibly, and the consequences that they will face if they don’t take it seriously. Leading by example is critical, and open communications to your teens about money is equally valuable.

A major focus within the subject of teens and money should be how to use credit. Unfortunately, most teens have learned from example that even if you don’t have the money for what you want, you can just use a credit card! We need to teach teens restraint and patience with purchases, especially large ticket items. We need to teach teens that credit cards should be used only for emergencies. Instead of immediate gratification, we need to teach our teens to understand the value of saving up for something.

Savings

Teaching teens about money cannot happen without teaching them about savings. Savings is an integral part of educating teens on how to handle their finances. Children need to be taught from a young age the importance of saving money and setting financial goals for themselves, and eventually their own families. Teens need to be able to see the big picture. As parents, we need to find the way that works for each individual teen. We have to be able to reach out to them in a way that makes sense to them. You can start by simply giving younger children an allowance, allowing them to spend part but making them save some of it as well. If your teen gets a job, the same emphasis should be placed on requiring the teen to save some of the money earned – make it a condition of you allowing them to have a job if you need to.

Norbert Georget is an accomplished professional speaker, teen motivator, parenting expert and author of the book, No-Nonsense Parenting For Today’s Teenager – How To Feel Like A Good Parent Even When Your Teenager Hates You. You may get a FREE REPORT called No-Nonsense Parenting for the Disrespectful Teenager. All the answers you’ll need to deal with your disrespectful teenager.

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Money Talk With Your Teen

Posted by Norbert Georget in Communication, Main Blog Posts on November 21st, 2009

Teaching your teen to be responsible with money can be a challenge. Most of the parents I talk are frustrated because they do not feel that their teens understand the value of money – or how hard it is to earn.

You can teach your teen to be responsible with money, though, by taking a very simple approach: let them have some, let them choose how to spend and save it, and help them understand banking choices. Given the economic crises that continue to happen, this is a skill that can serve your teen throughout life.

Purchasing Power

The first way to help your teen understand how to be smart with money is to talk to them about the value of what they purchase.  Take them shopping with you when they are young. Let them help you determine what is a good buy and what is not.  Show them how to shop by comparing the price per unit instead of just the total price. Help them recognize marketing ploys that are intended to part them from their cash.

Give your teens an allowance or let them earn money doing chores, odd jobs, or having a part time job. Teach them to save a portion of what you give them and let them spend some. Allow them to make decisions about what they spend, even bad decisions. They will learn quickly what buyer’s remorse feels like and become more selective with what they buy.

Teen Checking and Savings Accounts

Your bank should offer some sort of free checking or savings account or student checking or savings account that you can help you teen open. Having a bank account is one of the best ways to help arm your teen with the money knowledge he or she needs to get through life. Help your teen learn how to balance the bank statement, and teach him or her about the different kinds of accounts there are available. Even if your teen only adds $25 a month to a savings account, they can have $300 plus interest at the end of a year.

Teens and Credit

While credit rules continue to change, college age teens are heavily marketed by credit card companies and often get way over their head with debt. As well, teens often must take loans in order to fund their education, particularly in the Canada and the U.S. Help your teen develop good money habits and establish a good credit rating with a credit card. Teach them to use the credit card but pay it off each month. Help them shop for the right credit card with the best interest rate and terms to give them habits that will serve them well throughout life.

Your teen will benefit from having spending and saving, so the more exposure you can give them to things like grocery shopping, decision making with large purchases, and banking will provide them with the necessary skills to manage effectively throughout life. Start talking to your teen about money early – it is an investment that will pay huge dividends.

Norbert Georget is an accomplished professional speaker, teen motivator, parenting expert and author of the book, No-Nonsense Parenting For Today’s Teenager – How To Feel Like A Good Parent Even When Your Teenager Hates You. You may get a FREE REPORT called No-Nonsense Parenting for the Disrespectful Teenager. All the answers you’ll need to deal with your disrespectful teenager.

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