It is never a bad time to continue to talk about finances with your kids or start that conversation. It is never too early to start teaching your children and teens about money. With Discover’s Pathway to Financial Success Program, Discover has great resources to help guide that discussion, including videos on how to talk to your kids about money.
No matter your family’s financial status, I think it is important for teenagers to learn the value of hard work. In our family, while one of the children required a little more prodding and motivation to get a job, they both enjoyed the extra money they earned. Their own money – to a certain degree. Part of the money can be used how they would like and the rest is to be put in their savings account for the future. The oldest teen has her driver’s license now so she is responsible for her car insurance and gas money.
Here are some ways that you, as a parent, can teach your teens to save those hard-earned bucks:
Lead by example. With your lifestyle, the children will see how you spend your money. If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep.
Help your teens get a bank account.Establishing a bank account under their name would give them instant financial ownership. Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough. Their savings could go to their college tuition, or a big purchase like a car. Additionally, it gives them a sense of accomplishment once they have saved up, because they have something concrete to show for it. You may check out the special benefits that banks offer for teens who open their accounts at such an early age.
Construct a “spending plan”.Once they hear the word ‘budget’, teens tend to cringe at the mere thought of having to restrict the spending of their money. Instead, you and your teen son or daughter could build a “spending plan.” This would get them excited, and thinking of ways on how they can wisely spend their savings. Also, have them list their earnings versus their expenses. Let them know the difference between the items that they need and the luxury items that they want, which they can actually do without.
Make a “mock” investment in the stock market. Make them aware of the options that they have financially. Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies who manufactures products that they like. Monitor the stocks together and this would give them another option of investing their money in the future.
Remember to check out Discover’s Pathway to Financial Success Program They also have tons of information for parents on being a good financial role model. Parents can access everything from quizzes, to information on how to involve your school in financial education.
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My views are my own and do not necessarily reflect the views of Discover Products Inc. and its affiliates. This post was sponsored by Discover Card. Rest assured, this Post was written by me and was not edited by the sponsor. Read more on my Disclosure Policy.