Teaching money management lessons to your teens – Few tips for parents and teachers

Do you have teenagers at home? If yes, then you will know that imparting money management lessons can be indeed challenging long before adult financial responsibilities like mortgages and home loans enter the picture. This is because the teens usually come across tight budget restraints and they have to succumb to several ‘wants’ which range from night out with friends to the latest sneakers. Teenagers even have a tough time saving for their near future which seems to be impossible for them as saving is probably the toughest task given to them.

Nevertheless, being a teenager helps you stay in a rather powerful position as this is the time when you can start off with proper money habits for which you will thank yourself later on. Here are few tips for the teenagers.

Tip #1: Teach a teen the power and value of time

No, you’re not probably making tons of money right now but that doesn’t matter. That which matters now is ‘Time’. If you have obtained a summer job and by the end of the job, you get $1000, you may invest it at a rate of return of 5%. Even if you don’t contribute a penny for 50 long years, you get $11,468 at the end of the 50 years. If you try to realize how fast your money grows when you begin early, you’ll know why you’re taught to invest money on time.

Tip #2: Save money for emergencies

Being a teen, you’re probably staying with your parent and they’re taking care of you financially. But if you have to learn the best financial tips, you need to know the importance of saving money for emergencies. Although there are emergency lenders like www.micropaydayloans.com from which you can take out emergency loans, yet it is better to stay away from loans when you don’t have a steady income. You might feel tempted with the choices of loans that you get from sources like PaydayMe online loans and other places, but it is better not to give in to the temptations.

Tip #3: Keep a tab on your expenses

Well, this can be a tough step for you as you may be earning money now by doing jobs like mowing lawns, babysitting and these jobs are usually paid off by paying cash. Cash is undoubtedly the toughest thing to track. You can install the best money budgeting apps like You Need a Budget or Mint or Quicken through which you can keep a tab on your expenses in order to know the ways you’re spending money.

Tip #4: Let your teen think about their own financial goals

You will find many financial experts telling you that you should allow your teens to recognize their own financial goals in life. Unless you’re trying to raise financially irresponsible children, you should ask them to write down their goals and then work towards achieving them.

So, now that you know the different ways in which you can teach money management lessons to your teens, what are you waiting for? Sit down with your teens and tell them what they should do with their money.