February 2022 web

HOW TO TEACH TEENAGERS
ABOUT MONEY
Everyone is feeling the
pressure from the increased costs
on everything from food to cars.
Teaching our kids about money at
a young age gives them a great
foundation to be able to manage
their money as adults.
Give them the responsibility of
a bank account.
By the time your child is a
teenager, you should be able to
set them up with a simple bank
account. Make sure they realize
what fees occur if they spend
more money than they have in
their account. This takes money
management to the next level,
and will (hopefully) prepare them
sit down and have the talk—the
for managing a much heftier
“how are we going to pay for
account when they get older.
college” talk. Let your teen know
Get them saving for college.
that student loans are an option
There’s no time like the
to fund their education but they
present to have your teen start
come at a cost and should be
saving for college. Do they plan
avoided if possible. Talk through
on working a summer job?
all the alternatives out there, like
Perfect! Too young to be hired at
going to community college,
a local store? There are still ways
going to an in-state university,
to make money- babysit, mow
working part-time while in school,
the yard in the summer or shovel
and applying for scholarships.
snow during winter months
Lots of scholarships are available
for your neighbors. Help your
if they are willing to put in the work
child decide how much of their
to apply for them.
paycheck goes to their college
Teach them the danger of credit
fund and how much can be used
cards.
for “fun” money- buying a new
As soon as your teen turns
video game, stopping at their
18, they’ll get credit card offers—
favorite coffee spot, or a new pair
especially once they’re in college.
of shoes they have been wanting.
If you haven’t taught them why
Maybe parents or grandparents
debt is a bad idea, they’ll become
will match whatever the child
yet another credit card victim.
saves in the college account to
There is plenty of time to worry
help out with school expenses.
about a credit score later so throw
Teach them to steer clear of
those offers in the shred bin.
student loans.
Get them on a simple budget.
Before your teen ever
Since your teen is glued to
applies to college, you need to
12 February 2022 I QC Family Focus
their mobile device anyway, get
them active on a simple budgeting
app. Now is the time to get your
teen in the habit of budgeting
their income—no matter how
small It is. They should learn the
importance of making a plan for
their money while they’re still
under your roof.
Introduce them to the magic of
compound interest.
We know what you’re
thinking. You can barely get your
teen to brush their hair—how in
the world are they supposed to
become investment savvy? The
earlier your teen can get started
investing, the better. Compound
interest is a magical thing!
Introduce your teen to it at an
early age, and they’ll get a head
start on preparing for their future.
By sitting down with your
teenager and having an open and
honest conversation, then they
will have a great start to managing
their money.