Teaching Your Teenagers To Handle Money Wisely

Teenagers’ requirements border on the expensive but it does not mean that you have to bleed your account to meet their needs.

This article aims to give you some tips on how to make the money flow comfortable alongside teaching them some valuable money management tips that will be of lifelong help.

Pocket Money

Though the amount of pocket money that you give your teenager is always debatable, a basic thumb rule is that you tie the pocket money to tasks by the time they are thirteen years old.

After due discussion as to what the chores would be, which may include taking care of their terrain, taking part in family chores, shopping for the family, etc., among others, allow them to choose the jobs they would like to do.

The amount of money that you decide to give them should not be what you can afford but more importantly what you think they deserve and how they may spend it.

Fifteen-year-olds in the United Kingdom earn as much as 8.38 in a week (being the highest) followed by the new teens who get as much as 6 to 7. The amount progressively decreases as they reach the end of the teenage life. Never give your teenagers more money than you can afford. They also need to know your financial status clearly.

The clear rule about pocket money is that it should always be connected to work.

Allowances

It is always recommended that the parent pays what is necessary for the child. If they want something more, they should pay for it themselves.

The following alternate approach is risky and you can decide whether you can make it work for your teenager.

Some parents choose to give their teenager an amount equal to what they spend on essentials such as clothing and certain other activities. They then ask the child to pay for it instead of doing it themselves. This has one inherent danger: your teenager could end up spending the amount on unnecessary items and be left with nothing for the essential ones.

However, they understand more about costs and budgeting when they spend the money themselves. In such a case, it is a good idea to shop with your teenager and teach them essential tips about budgeting and comparison of prices.

Weekend Jobs

Encourage your teenager to take up part-time jobs. Though friends and family members can be of great help in this regard, taking up a job with an independent employer is a sure confidence booster. If they’re not sure what they might be able to do, Careers4U has this great article on what job can you get as young as 14, so you may wish to share it with your teenager and help them figure out something that they feel they could do and, crucially, would enjoy doing.

Applying for locally advertised jobs means that you are in for a lot of competition. You can help them to apply and offer their services to local businesses. They will be thrilled at seeing their hobbies and skills as contributing to their employability.

You can get them to write a CV just like yours’ or that of your partner. You can even get them to view online samples that will help them to sell their capabilities and experience gained through their many activities. This is a good chance to get them started in this area; this experience will stand them in good stead.

Banking

Teach them as to how to handle banking transactions. Allow them to create and operate savings and current accounts and handle debit cards. It is essential that they know how to write and issue a check, how credit cards work, and about interest charged on loans