Published On: Mon, Jan 20th, 2020

Teaching Kids and Teens About Money Management

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Teaching teens and children about money management early can prevent them from developing bad habits in the future. They should learn about responsible financial practices early in life. Introducing information about money management early may help them avoid financial problems in adulthood. Teaching teens and children how to manage their money before they start earning money can make a huge difference in their future success and financial stability.

Topics to Cover When Discussing Finances With Children and Teens

Start a discussion about money with one or more of these topics:

Explain how limited personal financial resources affect the choices people make.
Discuss wants and needs and rank in order of importance.
Encourage them to set measurable financial goals.
Help them prioritize personal financial goals.
Teach them how to evaluate the results of a financial decision.
Remind them to make decisions by considering alternative and consequences.
Develop communication strategies for discussing money issues with family members.

Practical Information to be Covered in a Discussion About Money With Children

Here is a list of more specific information that should be introduced into the discussion:

They should understand what a savings account is and how compound interest works.
Show them where they can find a savings calculator on the internet.
Teach them how to budget realistically and balance income and expenses.
They should understand how credit works and know what a credit score is, and why it is important.
Familiarize them with taxes and the vocabulary that is necessary to understand taxes.
Stress why it is important to be prepared for financial emergencies.

When having a conversation about money with teens try to use real life examples. Make it relevant to their lives. Using examples from their own family’s experiences will make a lasting impression on them. There are also many stories in the news examining the financial problems people face. Outline how the people may have arrived at the problem. And discuss what they could have done differently to avoid the financial problem.

Parents Should Talk to Kids and Teens About Money Management Often

Discussing money with kids and teens is not a one-time conversation. It should be an ongoing discussion. Look at the topics listed in this article and prepare what needs to be said, and emphasized, ahead of time. Teens are interested in money matters. Expect a lot of questions from the teen when one of the topics listed above is presented.

And as with any new learning, the more they are exposed to the topic and vocabulary the more they are liable to retain the information. Bring up a discussion about money when an opportunity presents itself. In time, it will be easy to turn almost any situation into a teachable moment.

About the Author

- I am an internet marketing expert with an experience of 8 years.My hobbies are SEO,Content services and reading ebooks.I am founder of SRJ News andTech Preview.

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