Teaching teens about money
How to Teach High schoolers about money
I don’t know if you remember what it was like being in high school but it seemed like finding the next coolest thing was always the goal.
So the thing about what is cool is that it always involved working out, looking good, fashion and of course if you are 16 having a car. Having a car was the ultimate. Having your own wheels to get around so you didn’t have to depend on your parents was the greatest thing since sliced bread.
So how would you get you to sit still for a minute to get a lesson in money and finance from the parents that you always try to avoid…lol
It’s called Leverage. Yes, this doe sounds like it might be a bit over a teenagers head but you are not going to tell your teenager about this part. This part is between you and me.
Remember your teen is concerned about looking good, being fit and having a car, right?
Right… So this is your leverage to teaching teens about money.
Your job is to show your teen the value that money has compared to the things that they want and make sure they have a goal to reach and exceed. Why exceed? Because after you get the money to get what you want it doesn’t stop there, you have to keep going to have to means to have your plans for later become a reality.
So here are the easiest ways to make it real for your teen
• Your teen wants to look good
Looking good costs money and even eating good costs a little bit more. So if your teen likes shopping at Vitamin Shoppe for protein and supplements to get healthier take the time to explain that they will have to set up an account and find a way to put money into it to help cover these costs. Being that its important to them to look good they will find a way.
• Your teen wants to play sports
High school athletics is the ultimate confidence booster for a teenager. The thrill of competing, performing in front of thousands of fans and being recognized for doing a great job are all appealing to your teenager. So let’s make a deal. Athletics comes with a need for a budget and sometimes this budget is big. Your teenager should participate in funding this budget. Whether it’s cutting the grass for the neighbors, shoveling snow or walking dogs and babysitting to make extra income to invest in their athletic budget you should have them do it. This teaches them the responsibility at an early age so they learn what it takes to make money work for them.
• College Bound
So your teen wants to go to college… This is the best way to teach your teen about how compounding interest and how it works when its used to your advantage. Mutual funds have been averaging 10% to 12% since the great depression so that additional money that your teen is making can go into a college fund and earn money so that by the time they are ready to go to college they can have additional funds to do things like buy books take care of housing and avoid student loans. It will sound really good when you call your kids in college and ask them if they need anything and their response nope I got it.
Teenagers a simple and they think everything is simple. It’s the reason why they get mad at you when you don’t get them what they want…lol! So your job is to make getting what they want simple for them by teaching them finances and money management in a way that it gets them what they want. These lessons will create innovative forward thinking and financially savvy adults when they grow up.
To get a financial coach to assist you with college plans for your kids, TIPS on money, Creating a budget, Saving, improving your Credit Score and ways to find out how you can start planning for early retirement leave a comment and we will be happy to help you.
Happy Friday!!
See you next week
