When your child turns into a teenager, parenting becomes a whole other ball game. Your teen is no longer a child but also not an adult so it’s a bit of a confusing time. But it’s a good time to get them prepared for adulthood.
Many teens today are earning money through social media or other work. They might know the tricks and techniques to rake in the dough, but they might not know they should save their money, or they might not want to.
Knowing how to save and spend money is an important part of adulthood so it’s time to start teaching them about it. Up next we’re going to tell you how to inspire teens to save money.
Use a Visual Method
Most people are visual learners and it is the best way to drive a rather ‘boring’ topic like saving money home. While it is a great idea to have a savings account for your teen, using a visual app or piggy bank works great too.
Let them actually see money growing on their app or in the piggy bank. It can be anything simple, even a jar where they drop their daily savings will drive the point home.
Another great way of encouraging your teen to save is when they set goals to achieve in a specific time. They can be small to large goals depending on their reason for saving money.
Encourage your teens to make a list of things they need to buy now and in future which makes them have short- and long-term goals.
When they have a goal they are working towards, they don’t need reminders to toss money into that jar or piggy bank.
Another great way of teaching saving habits is by matching the amount they save. Financial institutions and companies are using this approach too where they match IRS savings dollar to dollar.
Let your teen know that for any amount they save, you will match them up to a certain amount monthly. They will want to save more in order to be matched with a higher amount.
Make Saving a Rule
Since your teenagers are below 18, they still abide by your rules until they are adults and ready to be on their own. How about making a rule that they’ve got to put a certain amount of money into a savings account.
They may get and rebellious at first but will appreciate later when they need money to purchase a big thing like a car or pay their first rent.
Teach Them How to Make a Budget
Have your teen write down their monthly budget. This includes their financial responsibilities such as auto insurance and their wants such as money to hang out with friends.
Help them understand the difference between a need and want. Also, help them know how much they can spend on what so that they have some left to save. Budgeting empowers them to make informed financial decisions.
Teach Them to Earn Their Money
When your teen knows money doesn’t come on a silver platter, rather you earn it, they will learn to spend it sparingly.
Let them know in case they need money to hang out with friends, buy new clothes, go to the movies or eat out, they must work and earn it. Therefore, if they spend all they earn, they won’t be able to do what they want.
Teach Them By Example
Teenagers are very inquisitive and intuitive. As a parent, you can’t try to teach something that you don’t do yourself. So make sure you’ve got your savings habits right.
You can then show them how you divide your money up for fun things, bills, and savings. This helps them figure out how they should be divvying up their own money.
Much as teens can be stubborn, they know when they’re receiving a lesson they can use. And a lesson on money is a big one, and the earlier you start teaching it, the better it will be for them.