Click me
Transcribed

Easy Guide for Teaching Teens About Finance Responsibility

FINANCE How to Teach TO TEENS ia. com As kids head into their teenage years, they're going to be getting their first taste of freedom, and that includes financial freedom. This is when they'll really start making big money decisions on their own, decisions that could affect them for the rest of their lives. It can be scary and overwhelming, but with a little guidance, it can also be fun and exciting. The Big Lessons Teenagers have to really start thinking about their long-term financial goals. Saving is no longer just about getting that new bike or video game console; it's about establishing lifelong financial security for themselves. Looking to the Future: Where do they want to be financially in their 20s? Their 30s? Even their 40s and beyond? It may seem early to start thinking about that, but time moves fast, and the future creeps up on you quicker than you think. First Job: There are tons of first-time jobs available to kids as young as 13 and 14. Starting to work will really teach them the value of their money, as well as get them actively involved in planning for their future. OVERDRAFT Compound Interest: The sooner they start investing their money, the more it will make for them. Compound interest on an investment made in their early teens could make them a huge profit by the time they hit their early 30s. Mistakes Will Be Made: While it may be tempting for a parent to always try to steer their kids in the right direction, this is a good time to take your hands off the steering wheel. It's important for teens to make a few financial mistakes along the way so they can learn how to deal with them. Big Goals As teens, your kids will get to make some of their first really big financial goals and see them through to completion. Buying Their First Car: There are tons of lessons to be learned from buying a new car. Deciding between a new or used car is a chance for a lesson in the way property depreciates over time. And while they may not be old enough to put the loan in their name, you can still teach them about bills by having them help with the monthly payments. Even once they have the car, they'll need to think about car insurance and gas money, giving them an opportunity to start a monthly budget. Saving for College: If your teen is planning on going to college, they should be thinking about how to finance their education by the time they're freshmen in high school. If they're not sure if college is for them, this is an important time to start thinking about it and planning accordingly. Their First Tax Return: First jobs mean first tax returns. Paying taxes can seem overwhelming for anyone, especially someone filing for the first time. Sit down with your teen the first time they have to do their taxes to help guide them through the process and be on hand to answer any questions they may have. TAXES PAY Get Them Involved You can keep your teens' economic education active with these fun activities. eBay or Instagram Selling: Put Them on a Clothing Budget: At this point, they'll be old enough to have a bunch of junk they should probably get rid of. Encourage them to put it up on eBay. They can also try Instagram selling; just snap some pics of their products, apply some appropriate hashtags and buyers will come find them. Stop picking out their clothes for them; instead, give them the cash and let them do it. See how quickly they learn the need to budget and prioritize their needs over their wants. Invest: Give to Charity: Let them start investing their money in the stock market. A responsibly managed portfolio could lead to huge windfalls in the future. Encourage them to give some of their money to the needy, and teach them the differences between different kinds of charities and direct giving. Apps There are tons of great apps designed to help teens with their financial education. Here are just a few of the good ones. Left to Spend: A simple, easy-to-use budgeting app. It helps teens keep track of their finances and always lets them know how much they have left to spend. Peterson's College Guide: Helps kids search colleges by cost and scholarships available. Books Financial books teens will actually enjoy reading. Why Didn't They Teach Me This in School?: The Motley Fool: The Complete Guide to 8 Steps to Having More Money Than Your Parents Ever Dreamed Of Personal Finance for Teenagers 99 Personal Money Management Principles to Live By by David Gardner and Tom Gardner by Tamsen Butler by Cary Siegel A quick, easy-to-read book offering 99 practical lessons on money management. This book aims to give kids financial lessons most people might consider them too A book designed to help kids jumpstart their financial futures young for, such as buying stocks, starting a portfolio, etc. by giving them lessons on budgeting, debt management and more. fat, walet. com http://www.fatwallet.com/blog/teach-finance-to-teens/

Easy Guide for Teaching Teens About Finance Responsibility

shared by fatwalletig on Apr 30
38 views
0 shares
0 comments
As kids head into their teenage years, they’re going to be getting their first taste of freedom, and that includes financial freedom. This is when they’ll really start making big money decisions o...

Publisher

Fatwallet.com

Tags

teens finance

Category

Education
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size