I recognize that if you have adolescents, you likely have a lot on your mind. Having been there You’re worried about sex, drugs, alcohol, college, and so much more as you strive to make your final and lasting impression on them as they rush toward adulthood. Money should be included.
You can assist your teenagers become financially responsible adults by following these advice:
Take a job. Today’s teenagers have a full schedule with school, sports, music classes, and other activities. Having your teenagers work may seem like a bad use of their time, but it may be the best education they will receive before leaving home. For both parents and their teenagers, having their own money—money you didn’t give them—helps them develop independence.
Establish a checking account. If your teenagers don’t have a bank account by the time they turn 16, assist them start one so they can learn how it operates. You might need to cosign. Explain fundamental ideas such as how to maintain the register up-to-date, how money may have already disappeared since checks take longer to clear, and how to reconcile bank accounts at the end of the month.
Create a unique savings account. Helping your teenagers create an account and set money away for purchases they wish to make may help them learn how to save; but, you may need to change your own habit of purchasing anything they need.
Purchase a credit card. Opening a credit card account with a low limit and possibly with a parent as a cosigner is a reasonable next step if your kids learn to manage a checking account effectively. You could find solace in the fact that your teenagers are developing responsibility skills as well as having some emergency cash on hand at all times. You should keep an eye on how much is being used, what your teenagers are buying, and most importantly, whether or not they are paying the account in full each month. Not establishing their credit is your priority; teaching your children to be responsible people is. Keep a careful eye on them to make sure they don’t rack up debt.
Become college-ready. Encourage your teenagers to make financial plans and preparations for college. In truth, most teenagers will have to pay for some college expenses, even if it’s simply for socializing. Once they leave home, assist them in saving some money and developing a strategy for how they will make money during the summer or throughout the academic year.
As much as anything else you can do, helping with your kids to create and manage bank and credit accounts and find a part-time job will help them become responsible adults. When kids go for college, you won’t have as much chance to teach and instruct them, but you’ll still be their main source of income. Before they go, make sure they are aware of how money functions.