Blog Post

5 Tips for Raising Money-Savvy Teens

Jan 06, 2020
Today I am going to plant the seed of a nightmare in your head. I want to apologize in advance, but I truly believe that it is necessary for every parent to picture the following scenario.

Your kid just turned 18. They’ve had a part-time job for a couple of years now, so they are no strangers to money. However, now they are old enough to get their first credit card. The problem is that your kid soon begins to treat their new credit card as a secondary source of income.

You know what happens next.

Debt starts piling up.

Before they know what happened, they are overwhelmed by sky-high interest rates and fall behind on their monthly payments, which has a detrimental impact on their credit rating. Good luck to them on getting a loan, or edging out the competition when trying to buy their first house.

In a matter of months, your kid’s entire financial future is beginning to look quite grim.

And this is just the beginning.

Thankfully, this nightmare scenario can be easily avoided. All you have to do is emphasize your child’s financial education from an early age so that when they reach their adolescence, they are financially responsible.

But how exactly can you go about increasing your kid’s financial literacy? It’s not as difficult as you might imagine. Follow these five tips for raising money-savvy teens.

Teach Them Early On The True Value Of Money

The first lesson you have to teach your kids is that money does not grow on trees. If you want your kids to be financially responsible by the time they turn into teenagers, you must teach them the value of money from an early age. Make sure they understand that money is earned through hard work.

Teach Them To Differentiate Between Needs And Wants

Your kids will need to learn to prioritize financial obligations such as food, shelter and transportation over things that are simply desired such as travel, fashion, electronic gadgets, etc. The key is that they understand that it is ok to splurge every once in a while, as long as their financial obligations have already been met.

Teach Them To Spend Money Wisely

Teach kids to generate appropriate budgets, track their expenses, and evaluate their purchases. Teach them early on to compare products and analyze their cost/benefit ratio.

Teach Them To Think About The Future

Saving money should never be looked at as a burden. Saving money must become a priority. This is difficult even for most adults to grasp, but it is, without a doubt, one of the most important lessons to teach teenagers. Even though teens think they have life figured out, no one can predict the future, and it is crucial that they learn to save enough for a rainy day.

Teach Them To Be Creative

Creativity promotes outside-the-box thinking. It will also help your teen make sounder decisions. And with the way life keeps getting more and more expensive as we grow older, it is imperative that your teens learn to approach financial problems with an open mind.

Image of mother and children meditating on their living room sofa.
07 May, 2024
Incorporating mindfulness and relaxation techniques into your daily routine can significantly improve the mental and physical well-being of children, teens, and parents alike. By following this breathwork and mindfulness program, families can achieve a state of calm and relaxation, reducing stress and enhancing overall quality of life. Remember, consistency is key, and the more you practice, the greater the benefits you'll experience.
Image of stressed couple sitting on a park bench.
01 Apr, 2024
Managing stress is an essential component of a healthy lifestyle. Recognizing the signs of stress, building resilience, and utilizing available resources can significantly improve mental and physical well-being. As we observe National Stress Awareness Month, let’s take the opportunity to prioritize our health, explore effective stress management strategies, and support each other in leading happier, healthier lives.
Image of adolescents at the gym exercising together.
27 Mar, 2024
By supporting and encouraging our teens to embrace an active lifestyle, we're not just aiding them in maintaining their physical health; we're empowering them with the tools to face life's challenges with a robust and resilient mindset.
Image of redhead girl reading a book.
15 Mar, 2024
Great children's books not only provide entertainment but also open doors to new worlds, helping children develop empathy, understanding, and a lifelong love for reading.
Image of child's foot and footprint on a piece of paper.
27 Feb, 2024
Remember, the most important aspect of celebrating milestones is to create a sense of love, accomplishment, and family. Whatever method you choose, it’s these feelings that will linger in your child’s memory the most.
Image of two children gardening with their grandparent.
15 Feb, 2024
Gardening projects offer endless opportunities for learning, growth, and fun. They teach responsibility, patience, and the joy of nurturing life.
Image of two children doing arts and crafts indoors.
23 Jan, 2024
Rainy days don't have to be boring. With a little creativity, they can provide opportunities for fun, learning, and making memories.
Image of child sleeping in bed.
17 Jan, 2024
Sleep is a complex process, and when disorders arise, they can be challenging for both the child and the family. However, by understanding the common sleep disorders, recognizing the signs, and taking proactive steps towards management, these issues can be effectively addressed.
Red and white Christmas ornament.
20 Dec, 2023
Whether it's decorating the Christmas tree together, preparing a family meal, or simply sitting by the fire sharing old tales, these moments are what truly make the holiday season special.
Image of infant with finger in mouth smiling.
11 Dec, 2023
When it comes to our little ones, we often focus intently on their nutrition, sleep, and physical health, but dental hygiene is a crucial aspect of their overall well-being that sometimes gets overlooked.
More Posts
Share by: