Parents are responsible to teach their children how to be financially independent when they come of age. Teaching your teenager how to manage their money properly will help them to become independent. This will also help them to become more responsible with how they spend their money.
To equip and prepare your teens to become financially responsible and independent, here are tips you can teach them.
Start with their interest
Teenagers tend to be interested in what they wear. This is a good place to start a lesson. Let them take an inventory of what clothing they own. After this, you’ll both know how many pieces of clothing your teenager has. Then, you can let your teenager separate their clothing that is still wearable, out of date, and those that they have grown to dislike. When your child wants to get new clothes, you can suggest they get what they need. As a parent, you will also have an idea of what your teen already has and what you can get them for special occasions like Christmas or birthdays. The clothes that they don’t like can be donated or sold to any consignment shops so they can earn a little bit of money.
Help your teenager find a job
The first step to being financially independent is to have a source of income. Teenagers can have part-time jobs like babysitting, mowing the lawn, and many more. This will help your children develop their sense of independence and they will also gain work experience that will be valuable to them in the future. You can help your teenager out in his search for a job by asking what his interests are. If he enjoys music, he can tutor children who would like to learn how to play instruments. If he likes studying and excels academically, he can tutor children. If he is athletically-inclined, he can work as a lifeguard. There are many possibilities, you just have to know what your teenager likes to do.
You can also help your teen find a job through your connections, either from people in your family or your friends and acquaintances. Help your child with his resume and help him prepare for interviews. Hold a mock interview and ask them common questions that are asked in real job interviews. This will help prepare your teen.
Teach them how to budget
Start teaching your children how to budget their money by the age of 12. You can give them a certain amount and tell them to buy what they need. They can choose to buy expensive clothes or school supplies but when they run out of money, tell them that you won’t be giving them more. Hand them their allowance for the week and let them handle their daily expenses. Tell them that if they run out of money before the end of the week, they will be the one responsible for their expenses for the remaining days. Learning how to budget will be an important foundation for teenagers to have financial independence.
Teach your teens how to save up
Surveys have found out that only 40 percent of Americans are saving a portion of their annual income. Saving up is as important as learning how to budget, so don’t neglect to teach them this lesson. Teach your children to save up 40 percent of their income from their part-time jobs and then the remaining 60 percent is for spending on their wants and needs.
As you teach your teens how to be financially responsible, know that they will make mistakes along the way. Let them make these mistakes and learn. Be supportive and let them know that you are there for them if they need any help. Be there when they have any questions about financial independence. Doing this will help our children be educated and prepared to face the world. As parents, we also want our children to learn about being financially responsible in school. If you are looking for a quality high school, check out Voyagers Community School today.