When it comes to financial awareness, teenagers aren’t typically experts. Continue reading to learn four effective ways you can teach a teenager about managing money!
Set them up with their own account. Start with a checking account for their daily spending, and a savings account for your teen’s future goals. To achieve the best balance of control and independence, open an account that provides you with joint account holder status with full access – while also letting your child monitor and manage the account online or with their smartphone through SeaComm Mobile 4.0.
Teach them the importance of saving. It’s important for your teen to know that saving up money is a necessary part of life. Whenever they receive money from jobs, allowances or gifts – encourage them to pay themselves first. A portion of their money should be applied to savings for future use, with other portions used for bills and flexible spending.
Give them the reins. Instead of paying for gas, clothing and other things for your children…provide them with a certain amount of money at set times throughout the year. Let them know they’re in charge of making it last until their next “payday.”
Set an example. You can’t just talk the talk…you also have to walk the walk. Money habits in children are formed by the time they’re 7 years old – which means they most likely picked up their spending styles from you! If you’re spending money carelessly, they’ll eventually notice. Make efforts to set a healthy example for them, and they’ll be much more likely to follow it as they grow older.