If you’re the parent of a teenager, then you’ll appreciate that this can be a very important time in their lives. Not only are they sometimes a hormonal wreck, but they’re also faced with tackling everything from exams to learning to how to drive and handling the life lessons we all go through at this age.
You’ll also want to support them as well as you can to help put them in good stead for later life, and as such, it can be a good idea to teach them a little about financial responsibility. While there’s the basic – but still pivotal – maths skills they’ll learn at school, we’re specifically referring to some of the monetary aspects of day-to-day life.
Here are a few examples:
Knowing how to Budget and Learning about Savings
If you’ve been giving them pocket-money since they were young, you’ve made a good start, but rather than letting them spend it all you could use this as a means of teaching them about budgeting and saving.
Talk them through how important it can be to have some money put aside to use in the case of emergencies. In addition, if there is something they want to buy, encourage them to not instantly splurge all their money in one go, but to wait a while and save up by putting a set amount aside each week or month.
Setting up Bank Accounts
You may want to also set up a Junior ISA or savings account with them, which can be a great way of getting them interested in and accustomed to banking. It’s better to physically take them to a bank too and set up an appointment with a member of staff.
Explaining Taxes
In their mid-to-late teens they may get a part-time job somewhere and will subsequently start receiving payslips. This gives a golden opportunity for you to explain what’s included on their payslips and subsequently what taxes are and how they work.
Understanding Different Financial Options
Another area you might want to focus on is the future financial options which could be available to them beyond their future pay packets when they are adults. This could include everything from what different types of loans are available for different purposes, to what credit scores are and even finer details on what interest rates are and how inflation might affect their earnings.
A final thing to think about here is how you as a parent conduct yourself, as the behaviour you exhibit with your finances is also likely to influence your teenager. So, as well as teaching them the above, make sure you set the best example you can and encourage them to follow suit.
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