Ask Away Blog: Setting A Financial Example For Your Teenage Children

Monday, September 17, 2018

Setting A Financial Example For Your Teenage Children




Raising children is not easy. Not now, not ever. Not tomorrow, not ten years from now. Every single parent on planet Earth knows this fact. It is perhaps one of the only things in life you can state with 100% certainty. Raising children is never, never, never easy. However, it is tremendously worth it, over and over and over again. We are built for it. It sustains us. However, as we all know, there are better and worse methods of parenting. Perhaps the easiest way to become a bad parent is to fervently try to get everything perfect? Why? Surely there are easier methods of being a bad parent, such as lacking presence in the first place? True, but hoping to achieve everything perfectly is impossible without question, and so it must also be considered a ridiculous task.


However, that doesn’t mean that a little human tuition and the willingness to care, demonstrate and discuss cannot have massive impacts on the lessons your children learn. Perhaps one of the most important means of setting a teenager up for adulthood involves financial handling. As they start to work their first job or gain their first allowance, the work of setting a financial example for your children is essential.


Here’s how to implement this necessity in a manner that is neither unrealistic or lacking presence:


Financial Hardship


Financial hardship happens to us all. When running a household, this can feel doubly as worrisome. However, like any challenge, this is possible to overcome. Your teenage children will become aware that something is going on when you start to encounter these difficulties. They are observant, and they aren’t stupid. They will also notice when the usual financial allowance or other expenditure on your part isn’t as reliable as it once was.


Depending on your financial situation, it can be worthwhile to open up to them and tell them about the issues you’re experiencing, how they are affecting you and your plans to resolve this issue. Then, keeping them in the loop during the recovery phase can show them the power of practical planning. There are a few situations in which you might desire to keep quiet, and not all parents will wish to worry their children with these matters. However, if and only if you find this appropriate, your children may learn something from being made aware of this issue. They’ll learn honesty in financial hardship. They will learn methods to overcome, and how to prioritize and implement frugality. In some cases, in can simply help them understand the situation more appropriately, allowing them to stay more understanding of your situation for the time being. They may even learn the correct use of financial utilities, such as utilizing a payday loan responsibly https://www.onlinecash4payday.com, something it’s possible they will use in the future.



Honesty is always the best policy, and so choosing to divulge your situation to the level you’re happy with can be worthwhile.


Priorities


Prioritizing your monetary flow is essential, and teaching teenagers this is worthwhile too. Let’s say they have an upcoming optional school trip skiing in Switzerland. While this isn’t the most academically educational trip, you feel as though investing in this could be a wonderful and worthwhile use of their vacation time, and you may have the funds to stretch there. This might mean that in order to pay you back some, you ask them to provide some of their working funds each week to pay you back. You may also ask them to purchase a ski mask for their own use.


Priorities can be taught through requirements like this. It can show that we must work for everything we get, even if being helped along somewhat. It shows them to put their money in experiences and items of value, rather than momentary pleasures and items that falsely promise happiness. Meeting a financial goal can also show the timeline in which they can expect to pay, and how to meet financial deadlines when making a purchase.


Helping your child with financial priorities is not only important in the long term, but can help them set up more professionally when they start to branch out of your home. Simply matters such as saving for an emergency car repair, or placing the security deposit down on a new apartment can both be helped by this lesson, and the best way to teach them this is via demonstration.


The Value Of A Dollar


There’s one thing that children with affluent parents will not learn if not expressly taught - the value of a dollar. Children that grow up in relatively humble financial situations will often learn this early. The value of a dollar can mean much more than the simple currency value it holds. It also means time for some people, practical planning for others, and the ability to turn down silly spendings for all. The value of a dollar is not appreciated unless earned. This is why many overnight lottery winners seem to lose it all immediately, or at least at a rate that perplexes us.


No matter what circumstances your children have grown up in, they need to learn the value of a dollar. They need to feel the pressure of working a job to earn, and they also need to buy vital items that they need themselves. Any and all indulgences should be on their part, earned and appreciated for them. Even affluent children without an express need to work should also know how to do this. Even very wealthy people are starting to realize that a little financial humility can be an excellent thing for a child. Jackie Chan, world renowned actor, martial artist and millionaire, has expressly stated his son is to receive nothing in his inheritance upon his passing. This sounds quite harsh for most of us, and we might not do the same in his shoes. However, his decision speaks to a common understanding that children have a bent financial attitude if they do not learn the value of a dollar, and learn it well. There are many more creative solutions to do this, but they will depend on the internal dynamics of your living situation, your child’s interests, and how they use their money. If you prioritize this lesson from the offset, you’ll surely find a way.


Accounts & Terms


Opening accounts for your teenagers is important. A bank account can help the financial confidence of any mid teenager, depending on the allowance of the bank you apply with. Holding a bank account can help them save money, allow you to build a long term savings plan, and also track their expenditures in the form of bank statements.


This is also a good time to help them understand how to work with a bank, how to manage money, and how to read the terms on an account. This form of financial small print cognition can help them avoid bad terms in the future, and instead develop a more competent understanding of the systems they will rely on as they pass into adulthood, and begin to make more long-form financial decisions. A bank account will also help them ensure the security of their savings, and as they begin to travel on their own, enjoy more access to their funding sources.


With these simple tips, your teenager is sure to learn excellent methods of conducting their financial affairs, guided by your loving hand through verbal instruction, demonstration, and staying close to them throughout the entire learning process.








1 comment:

  1. Teaching kids the value of money is a huge thing to do. Plus should be taught at a young age.

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