Tips to Teach Your Teenagers to Be Smart with Money

It is our goal as parents to teach our children how to behave when they grow up. Not only does this include how hard they work and how they treat others, but it also includes how they handle money. If you are struggling with debt, it can be hard to teach them how to be smart with money. You are supposed to show them how to be smart with money. Even though you struggle, you want them to be better.

Here are some tips to show your teenagers how to be smart with money.

Show them your finances. Your teenagers are old enough to learn about money. They should know how much money you bring in every month and where it all goes. They probably have no idea what you bring home. Though they use electricity and eat your food, they are clueless about what things cost. This needs to change. Time to share how much it costs to live and exist in the world. Share your budget with your teenagers.

Even if you are struggling to repair your credit and get out of debt, you need to show them this side of it. Too many parents try to hide their struggles with money. However, it is important for your teenagers to learn how you got there and how you are working to get out of trouble. By learning about your struggles, hopefully, they will be less likely to follow in your footsteps.

If you are contemplating a new purchase, go through the process with them. If the time has come to buy a new (used) car or replace an appliance in your home, talk to your teenagers about what things you need to consider. If you are getting a loan, show them what the monthly cost is so you can help them see whether or not you can really afford it. If you are saving up for a birthday or Christmas gift, show them how you put money aside every week to be able to make a special purchase.

Don’t give your teenagers credit cards. Though many parents think that a credit card will teach their children about debt, it can also be dangerous. Many teenagers get a credit card and max it out without even thinking about it. They don’t consider the ramifications and how they are going to pay it back.

Start a checking account for them. Once your teenager has a job, they should be allowed to get a checking account. They can deposit their money in that account and use it as needed. However, you need to talk to them about it. Make sure that they know that they have to pay for their car and gas before they spend the money on anything else.

You might also want to start a savings account with them so that they can start saving for the things that they want early! Teaching teenagers about money is very important. One day, they are going to be the ones paying the bills. So the sooner they know how to do so, the better off they will be.

You can start by going through your own finances (whether you are proud of them or not). Show them what comes in every month and what goes out. Talk to them about any big purchases that you are making, especially if you need to take out a loan. If you are struggling, talk to them about how you got there and the plan to get out.

As soon as your teenager gets a job, it is time to get him or her a bank account. Talk to him or her about what he or she is expected to pay before buying other things. A savings account might also be helpful so he or she can put money away for things that he or she wants.