Here’s a fast approach on raising a teen and instilling a sense of financial responsibility through interactive financial discussions woven into the fabric of your family. I can’t promise that your Fortnite-obsessed adolescent will learn the fundamentals of budgeting and saving and improve their financial situation overnight. But I can assure you that if you implement at least some subtle yet effective strategies, you will notice some positive results over time. Not only in your child’s attitude toward income, but also in how you and your partner approach money.
Controlling impulsive purchases is one of the most difficult aspects of parenting a teen and imparting financial education. You must learn how to prevent your children from overspending and teach them about financial management. Consider this scenario: you give your 14-year-old daughter a PlayStation 5 for her 14th birthday, despite the fact that she already has a perfectly good PlayStation 4.
Why shouldn’t she get the best there is? I’m making a lot of money, but for whom? What’s the big deal about it? These are some of the things that may come to mind if you are asked why you need to buy an expensive gift. That is the crux of the issue.
This is why you should make more deliberate judgments when it comes to money for as well as around your children. It is best done together, beginning with a conversation with your partner.
When you have a child, discussing and managing home money with your partner is not enough. You should also talk with them about the type of financial education or spending habit you intend to instill in them.
For example, in the preceding scenario, if you and your partner had discussed the PS5 gifting plan, you may have altered the situation together. A talk about the subject could have helped you avoid making the purchase and given you the opportunity to teach your daughter about money.
- Educate her about the difference between the versions of the console and why buying a new one may not be worth it.
- Convincing her on the importance of using that money to buy something more critical or needful (like an education software)
- Entering into a hypothetical discussion about the fate of the old gaming console (plus discussion on electronic waste and the art of repairing)
- Introducing budgeting concepts (using that money to invest for her future education)
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