Teaching Your Teen Good Financial Principles

If you have a teenager at home, hopefully, you’ve taught them good money habits. Now that they’re older, set them up for success in life with more in-depth financial goals. Here are some things to try with your teenager.

Start Earning

One of the first money goals for your teen is the importance of earning their own money. Have them apply for jobs so that they have “skin the game.” If it’s their spending and saving money, they’ll be much more likely to take it seriously. 

Find a Financial Institution

Help your teen set up a bank account with a high-interest savings account. Along with your teen, shop around for the best options. Consider credit unions, banks, and even online banking options.

Teach Budgeting

Before they get that first paycheck, sit down with them and create a budget. Set up sections for fixed and discretionary spending. Be sure to include a section for savings, both long and short-term. 

Set Up Financial Goals

Now that the budget is in place, work with your teen to craft it based on their goals. Maybe they want to save up to buy a car. Maybe they want to head to the beach next weekend with their friends. Discuss their long and short-term goals in detail, then make the budget align with them.

Do One Thing: Help your teen create a budget that works for them. It’s a simple, yet vital financial tool that will serve them well throughout life.