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It wil help them in life
One of the most important things we can do as parents, is to learn teens how to handle their budget, so that they can build a solid financial future. Starting early on will help them learn dealing with money and to stay within their budget.
Below a few tips to help you start educating your children how they can save and handle money in the long run.
Involve them in the family budget. One of the best things you can do for your teen and their financial sense of responsibility is to let participate in your own family budget. Or a part of it, if you are not willing to share your entire financial picture.
Whether you involve them in your monthly evaluation of the budget or ask them to help you figure out what the highest priority is, they need practical experience.
If you discuss the budget with your teen, try to explain them in a language that they understand. For example, show how the € 100.00 you can save on electricity by turning off unused devices, paying the pool subscription or that crazy pair of shoes.
A few fun things that let your teen help you budgeting from month to month, to give them an idea of how a budget works;
- Let them help with the menu plan and set the shopping budget. Show them how much food actually costs and how fast you are through your inventory in your household. This will help them understand why you are buying certain things or not and they will be better prepared for their own food budget later on.
- Show them the energy, telephone and water bills. Help them to save you by looking for alternatives to cool down or stay warm in the seasons. For example: wear a vest or extra socks or a thinner shirt instead of the airco or fan.
- You can also ask them to find out yourself in different ways to save money on gas, water, light and other expenses.
- Teach them to compare prices. For example in the field of internet / telephone providers, supermarkets and clothing stores physically or online. Calculate travel costs and / or parking fees or shipping costs.
- Budget their own money
- Teach them to manage a bank account. One of the biggest pitfalls of teenagers when they become adults is the inability to manage their money.
- Do not let them pay everything with a card, but distribute and spend their budget in cash as far as possible.
- You can let them keep a cash book for this, no matter how old-fashioned that sounds. Very nice if you pimp them yourself with, for example, washi tape.
- Teach them how buying on installments really works and show where possible figures. For example, look at mail order companies. What they have t pay on interest, if they buy on installments. Have them figure out something and create a fictitious account on Excel on which you process the monthly payments, installments and interest. Is that expensive pants really worth it when it is already worn or so incredibly 2016 and you still pay for it in 2017?
Although they can understand the need for a budget and how it all works, the real money itself can be a problem. Many young adults earn money and have more than enough to live within their needs. The fact that they are in trouble is simply due to incorrect budgeting.
Do you have tips or an experience in teens and budgeting yourself? We like to read them
Have a great day!