Pages

Monday, February 17, 2020

Financial Responsibility: Preparing Your Teens to Make the Best Financial Decision




Growing up, I never fully understood the concept of financial responsibility or how my parents managed their finances. I had no appreciation for the naira note nor how to be a thrifty shopper. I was ill-prepared to manage a budget or make wise money choices as a college graduate. As I got older and more financially conscious, I realized that if it wasn’t for my minimalist parents, their wise decision to 
open a kiddies account for I and my siblings as well as generous relatives with deep pockets, I couldn’t have imagined where we would be today, financially speaking.
Several life lessons opened my eyes to the importance of financial responsibility which is why I think it’s incredibly important to teach young children how money works and how to wisely use it.
If you asked most teens or kids in their pre-teens what it means to be financially responsible or if they have a teens account, I am sure you will get a lot of remarks masked in confusion.
This is why I will like to share some practical ideas for imparting financial responsibility in your teens as you prepare them for their future.
How to Teach Your Kids Financial Responsibility
Having that money talk with your kids as they grow older may be a hard nut to crack. With this in mind, I have curated a checklist to help you prepare your kids as they navigate the tricky waters of personal finance;
1.      Be the example:
Several teens rely on their parents to set the right example when it comes to money management. As parents and guardians, we play a crucial role in shaping our children’s financial habits and attitude towards money.
A great way to set the right example as your teens grow older is by including them in some of your financial decisions. An example, showing them how you get better deals on groceries, or how you use a budget planner for your monthly expenses.
Let them in on your budgeting process for household supplies, essential bills and gradually introduce them to how you sort your taxes or pay your mortgage.
Very often, children mimic the financial habits of their parents or guardians.
If your children see you as the type of person who saves up to buy something, then they are more likely to do the same but if they notice you’re quick to turn to credit to fund non-essential purchases, they most likely follow suit.
2.      Give your teen the freedom to manage their own budget:
This will teach a vital lesson and help them understand that money is not an unlimited resource.
Allowing your teens manage funds early will help them recognise the value of money and teach them the importance of spending only what they can afford, help them avoid the drawbacks caused by unplanned expenses.
You can also introduce them to banks with teens account and talk them through everything they need to know to ensure open the right account.
3.      Pocket money and budgeting
One of the ways to teach teenagers financial responsibility is giving them a set budget for a specific task.
Pocket money offers the first taste of financial responsibility to a lot of children. Giving your kid a regular amount of money and the sole responsibility of paying for things they like, offers them the first glimpse into life and how to stick to a budget.
An example could be providing them with a monthly budget for their meal and allowing them spend the funds as they like, if they choose to spend the money on other things other than their meal and they run out funds, they’ll learn a valuable lesson about budgeting and discipline.
Teenagers who receive a regular, fixed sum are likely to keep track of their financial income and spending. A crucial part of teaching your teenagers how to manage their finances is to be strict with the money you give them and ensuring you rarely ever bail them out when they overspend. This will teach them that overspending can lead to the problem of debt.
4.      Share tales of your financial mistakes:
Opening up to your kids about certain financial mistakes you have made in the past and how they hindered you is a good idea. These stories are a great way to highlight the dangers of poor financial habits. This could mean telling them about how you incurred debts because of a bad spending habit on unnecessary items.
By sharing some of the financial mistakes you made when you were about their age, you will be teaching them valuable financial lessons.
5.      Help them Develop a Savings Culture:
Teaching your kids, the importance of saving and only buying the things they need is a crucial part of shaping their adult life.
This could means encouraging your kids to set aside a small amount every month to buy a new pair of shoes, or teaching them how to save long-term for bigger projects.
This habit and financial discipline will make it easy for them to achieve their long term goals of going to college, paying their mortgage or buying a car as they become adults.
Talking to teenagers about the need to save can be quite tasking, so it’s a great idea to introduce them to saving by leveraging their interests.
If your kid is interested in fashion, you can help them out work out how to meet the cost for items they will like to get. This could mean teaching them to set aside a certain amount of money monthly or helping them secure a part time job.
6.      Teach them how to manage their first wage:
Helping your teenager secure a job is one of the important steps to financial independence. This will also help increase the amount of disposable income they have access to.
Younger kids who still go to school can take up informal employment like babysitting for family friends, while teenagers over the minimum school leaving age can take up full time employment. This will play a key role in preparing them for the future and is also a great opportunity to in-still in them the importance of saving some of their earnings for rainy days.
An example could be, if your teenager would like to buy some fashion items, make up or the latest PS4, you can show them how to set-up a standing order to their savings account on every pay day. This way, their savings is automated and it so much easier to stick to a budget.
Image Source: Unsplash cc @blankerwahnsinn

Written by: Mariama Barry

39 comments:

  1. Thanks for sharing such valuable information I am also impressed by the creativity of the writer. This is excellent information. Thank you for sharing this valuable informative post about Digital Marketing Services. If you have any another information related Internet Marketing then kindly inform me. I am Sharing usefull imformation about Off Page SEO. It is amazing and wonderful to visit your site
    Whatsapp group links

    ReplyDelete
  2. Very useful post. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. Really its great article. Keep it up. This is a great article shared by you. It's very informative and knowledgeable. Thanks for sharing thiswith us. this article most of the informative part is Opening up to your kids about certain financial mistakes you have made in the past and how they hindered you is a good idea. These stories are a great way to highlight the dangers of poor financial habits. This could mean telling them about how you incurred debts because of a bad spending habit on unnecessary items.
    By sharing some of the financial mistakes you made when you were about their age, you will be teaching them valuable financial lessons. MyAvenueA Shop.

    ReplyDelete
  3. Several life lessons opened my eyes to the importancekhalid Hassan of financial responsibility which is why I think it’s incredibly important to teach young children how money works and how to wisely use it.

    ReplyDelete
  4. Helping your teenager secure a job is one of the important steps to financialtanzir

    ReplyDelete
  5. This is my first visit to your web journal! We are a group of volunteers and new activities in the same specialty. Website gave us helpful data to work. https://linkw88moinhat.com/tai-xiu-la-gi/

    ReplyDelete
  6. Thanks for this very informative and useful article. I like it.My Automotive Zone

    ReplyDelete
  7. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can't help but wonder, what about the other side? !!!!!!Thanks 2500 installment loan for bad credit

    ReplyDelete
  8. Want to make cryptocurrency by browsing the web? You can! Click here for step by step instructions! Make Money

    ReplyDelete
  9. For instance, financial services technology has set higher standards in the financial world, Blake Mortgage as experts confirm the fact that instant access and secure financial procedures can be adjusted to the global evolution of the financial market.

    ReplyDelete
  10. You know your projects stand out of the herd. There is something special about them. It seems to me all of them are really brilliant! Financial Planning

    ReplyDelete
  11. Though many of these fees can be rolled into your loan, over the long term, collingwood condos for sale you may be paying an extra 10% in unnecessary Financing Fees that are loaded into your loan!

    ReplyDelete
  12. First you need to know about your options for such modifications. One is your original mortgage lender. You should talk to them and see if you meet their criteria for loan modification. Fill out a check Step by Step Guide (USA)

    ReplyDelete
  13. With its growing popularity among the masses, it now enjoys an increased level of acceptability at all levels, for instance, you can now buy stuff with Bitcoin cryptocurrency directly and also trade it at different platforms such as CoinBase, Bitfinex, Bitstamp, Kraken and more. cryptocurrence processing

    ReplyDelete
  14. This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price. finmaxfx.com/en

    ReplyDelete
  15. After years of working from the outside/in I currently believe that "true beauty starts from within" and my purpose in life is assisting women with developing their own internal beauty awareness. When you tap into the inner core essence of you, your true beauty will emerge effortlessly. The next time you sit down at the vanity take a moment and turn within. Brilliance SF Cream

    ReplyDelete
  16. What do you need to know about online surveys? Read on to know the steps to making money online through surveys. make 400 a day online

    ReplyDelete
  17. Financial plan, or at least it seems that way. You can consult your banker, go to a brokerage firm, or hire someone who calls himself or herself a financial planner to prepare a plan for you .. financial advice

    ReplyDelete
  18. A debt of gratitude is in order for giving late reports with respect to the worry, I anticipate read more. Crypto bank account

    ReplyDelete
  19. Millions of individuals find it hard to escape credit problems and manage their finances responsibly. This problem can stem from a lack of experience handling money, a lack of education with regard to setting a budget or a negative credit report stemming from past credit problems. They really need Credit counseling to get rid of their problems

    ReplyDelete
  20. While the admin of the web site is working, no question soon it will likely be famous, due to its feature blogs.
    high yield investment program

    ReplyDelete
  21. All around the world nations have understood the significance of accomplishing comprehensive social orders and supports endeavors at augmenting financial consideration. europa-road.eu

    ReplyDelete
  22. Beauty can defined in a variety of ways; to some it simply means the state of being pleasant to the eyes while to others it is something that brings a feeling of sweetness to the heart. To others still, it could be a sound or touch that soothes the soul however; true beauty in the actual sense encompasses all these and even more. 풀싸롱

    ReplyDelete
  23. This comment has been removed by the author.

    ReplyDelete
  24. After years of working from the outside/in I currently believe that "true beauty starts from within" and my purpose in life is assisting women with developing their own internal beauty awareness. When you tap into the inner core essence of you, your true beauty will emerge effortlessly. The next time you sit down at the vanity take a moment and turn within. Hair Removal Nanaimo

    ReplyDelete
  25. All things considered, this article was not intended to offer you each response about purchasing land for benefit, yet rather a brief look at how you can win today. Again this is nevertheless one formula for purchasing and selling houses. You should locate the one that works for you. "Would you be able to make money in this market?" You wager! Seoleadgeneration.be

    ReplyDelete
  26. Much obliged to you for such an elegantly composed article. It's loaded with adroit data and captivating depictions. Your perspective is the best among numerous.best online installment loans

    ReplyDelete
  27. I imagine that much obliged for the valuabe data and bits of knowledge you have so given here. Canadian Singles looking for Marriage

    ReplyDelete
  28. Do you wind up routinely longing for big stake or unexpected monetary leap forward and in this way every now and again partaking in various sorts of lottery or fortunate plunges. get money online

    ReplyDelete
  29. The three other ways to earn money online is by betting, setting up an online business, or by playing computer games. internet jobs

    ReplyDelete
  30. For example, a firm that can offer web or cloud based services despite the fact that it very well may be nearby can be best for such occasions when you need to critically get to your monetary information. accounting service

    ReplyDelete
  31. This will profit customer in getting a charge out of consequences of the changes which acquire certainty the business, thusly, adding to an expanded interest for exhortation.
    https://www.Financeadvisornewcastle.co.uk

    ReplyDelete
  32. This fact was also impressed upon by billionaire macro hedge fund manager Paul Tudor Jones when a month back he announced plans to invest in Bitcoin. https://binorcoin.com/

    ReplyDelete
  33. Plus, having multiple streams of passive income also assist with minimizing the risks involved should any one of the income stream fail for any particular reason. Chris Harrold

    ReplyDelete
  34. This blog was amazingly useful. I truly value your benevolence in offering this to me and every other person! business plan examples

    ReplyDelete
  35. For this reason, and plenty of others, small enterprise proprietors have selected in lots of instances to trim the fat, reduce out immoderate waste, and put off anything is assessed as a "non-essential" provider or position.Working Capital

    ReplyDelete
  36. The money given to an Individual depends on a proportionate payment structure setup by the site that distributes almost half of its advertising revenues to its members. charvelrebagay.com

    ReplyDelete
  37. President of Product Management and Marketing at Clearent and has held management roles at Network Solutions and Intuit. Selling Merchant Services

    ReplyDelete