Financial Advice for Teenagers

Early in a teens life, financial advice can be instilled. Teaching teens to save for a rainy day is a smart thing to do. For most teenagers, having a car and gas money is the coolest and a priority for many. What happens when mommy and daddy no longer pay for your car insurance? How do you plan on making end’s meet? Financial responsibility is a great thing for you to teach your teen before it’s too late.

Teaching your teen responsibility about finances will help them not to have to worry about money their whole lives. They do not need to get into a financial bind right away or ever for that matter! Unfortunately, for the teen it is easy for financial troubles to begin. Credit card companies are enticing them, and the freedom to make purchases can be overwhelming. 

We need to teach them the value of money when they are young. A good way to do this is to show them by example. Help them to open a savings account when they are young. They can add to this every time they get paid for doing a job, or money they are given for presents. They can save until they have enough to get something they would like to purchase. They will have learned the meaning of saving to buy. 

Encourage your teen to work during the summers. Learning about work ethics helps them to be ready for the real world. This can teach them how to handle money as well. They need to learn about self reliance, so try and let them do things for themselves. Cell phones, for example, will be appreciated more if they know they earned them with their own money.

Teach your child about the kinds of bills that come with getting out on your own. Show them what kinds of bills you pay. Rent, utilities and entertainment are not the only things they need money for. Tell them about insurance, repairs, unexpected emergencies that arise. This helps them to know what to expect and not be so caught off guard. Teenagers who leave home knowing what to expect and how to budget, will be less likely to ask you to bail them out. 

Talk about building good credit with your teens. Explain the outcome of paying off credit cards and not paying them off. Make sure they understand that paying credit cards on time and paying every month will give them a good credit rating. Teach them about the interests rates that are involved in credit. Let them know if they make bad choices they could be actually paying some times as much as double for the item they so badly wanted.

Some teens will listen and will use the information wisely you give them. Others will have trouble. Giving your teens financial advice is a very important thing you can do for them. Preparing them for becoming responsible adults in this world includes financial advice.