How to Teach Your Teenager Financial Responsibility

Is your baby getting big enough to lead his life on his terms? Are you stressing about how to teach your young lad the basics of money handling?

Parenting a teen is one of the craziest things. It's like having an adult in the making. Right advice and though-full guidance given out in the correct moment can make his life easy and fruitful. What parents do not bother understanding is that with every generation thinking and intellectual approach too changes. Things that were acceptable for you may not be for your kids. You need to be adaptive and flexible enough to see life from their view and to give them guidance from what lessons you have learned.

Soon your teen will be heading for a job or will be taking care of his finances independently. What advice you can give to him and what education in finance you should provide? These are the two things you must be pondering upon.

As you know Americans spend on unhealthy things especially teens. They do not bother stressing about their future and responsibilities rather they live in the day. So, keeping their habits and perspectives in mind here is a short guide to help you teach your teen how to manage his finances.

Teach Them About Smart Spending

Do you feel those butterflies tingling your tummy just as you get your paycheck? Do you feel like rushing to the store and buying whatever you have been planning? Similarly, when a teen starts earning he wishes to get whatever he has been holding back. He runs to malls and stores and gets even those items that he may never use. That's what you need to teach them. You need to ask them to keep a close watch between the freedom of spending and the level of debt. They should not get trapped in unpaid credit card bills or run after bank loans.

You need to teach your teen about having a moderate lifestyle. He should get a sense to sustain his standards and to do that careful spending is the first step. Moreover, teach them what's more important to purchase and how to plan things out patiently. It's good to live in the present but one must have an outlook of his future in mind.

Open A Bank Account

Give your teen a sense of responsibility. They should be exposed to the challenges of the real world. Your child may be overjoyed to have a flashing debit or credit card in hand, but teach them to take a hold of their excitement and be more careful about their spending.

By having a bank account they will be benefitted in two ways, first, they can monitor their spending through the bank statements and secondly, they will get the sense of managing their expenses. Remember that in order to safe your child from getting caught in debts you cannot refrain them from managing their money. You should give them the exposure they deserve while you backing them up with your support to save them when they fall.

Give Them A Certain Financial Responsibility

You must have been advised to teach your child the concept of saving. But how? This is something you need to learn from here. Your teen with his enthusiastic nature and an adrenaline rush to try new things would never bother to pay attention to you guiding him about saving. He would consider it as the most mundane thing to try. The only way you can teach him or her the concept of long term saving is by giving him responsibility. Ask him to save money to pay the fees for his upcoming semester. Give him a certain goal to chase then only he would consider sacrificing his mere wishes and saving a few bucks.

Teach Team About Budgeting

Budgeting, does it sound intimidating? It’s the basic yet most important aspect that can lead you either to spend a relaxed and fulfilled life or a stressful one. At the start of every month, sit with your teen and teach him or her how to list down all of the expenses along with keeping a certain amount for extra expenses. The budget should be divided into three main section- the prime expenses, extra expenses and savings. Make it a habit. Do not pressurize your kid. Let him openly share his goals about spending for the month. Once he is done then teach him about the important aspects.

Introduce A Software Program Or A Finance App

"Be diligent to know the state of your flocks, for riches do not endure forever"- King Solomon, the richest man in the history.

Make technology your best mate to help you manage your teen’s finances. Introduce some cutting edge financial software and apps which he can use to keep a check on all of his spending. Apps like "You Need a Budget" is used best to manage debts. "Personal Capital" is used for finance management. Similarly, an excel sheet will help your teen keep a record of his monthly expenses. He should know how to use technology to make things easier to manage.

The apps will let him synchronize his bank account and give a daily transaction report. It will track his spending and give him a graphical presentation as to how his spending increases and on which days he was left with minimal money. Your teen can also set targets to achieve. He can give the app a certain amount to save every month.

Wrap Up

Give your child the confidence to make his decision. Do not hinder or restrict them. Your teachings and education will help them find a better way not your cruel restrictions. Let them have the exposure and make mistakes. Teach them how to stand again and fight their weakness. Teach them how to find solutions and not to get disappointed even when they are broke.