How to Help Your Teenagers Manage their Money and Not Waste it

Parents play a vital role in teaching their teenagers the need to manage their money properly. Most teens will look up to their parents to learn sound financial behavior and a great attitude towards money. It is the parents that can set the right example and provide financial literacy to their children.

Here are some of the best way you can instill wealth management technique in your teenagers that will help them throughout their lives –

Share Financial Responsibilities with your Children

Your teenagers should recognize the value of money so that they can understand how they should prepare a budget and not spend it on unnecessary things. They should learn that they should spend only what they can afford and avoid the pitfalls of the unplanned expense that can put them in an awkward situation. Provide your children with a regular pocket money and allow them to decide how they want to spend it.

Setting the Right Example

Teens learn from their parents and will copy the behavior of their parents. Thus, if you have good money management skills, it is likely that your children will learn the same. You can include your children when making financial decisions and allow them to see how you shop and look for better deals to save money. You can also share your own financial mistakes so that they do not repeat the same mistakes again.

Developing a Saving Habit

Teach your children about the importance of saving and to purchase the things that they need. If they wish to buy something they like, they should learn to put aside some money every week from their pocket so that they can buy it once they have the set amount. If your teenager is working part–time, you can help them set up an account where they can save the money they earn. It will ensure that they save and also allow them to stick to their budget.

Remember that as parents, it is your duty to raise your children as budgeters or as wasters.

Written by Latoya Lawrence, she can be found at fiverr.com