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Money management is a vital skill that will help teens learn to be responsible with pocket money. Here are some hacks for parents to teach this art to their teens
It's always great to see children embrace the transition into teenhood, but with this phase of life comes great challenges. They are moving away from a carefree life to one which calls for realizing responsibilities. It may be hard to make teenagers understand that they have reached the age where they need to make intelligent decisions. While adolescence is a time for children to evolve and grow, it is a great time for parents to make them aware of the relevance and importance of money management.
We, as parents, can always say NO when our children ask us to buy stuff that is either out of the budget or isn't needed right away. But, that will not be the right way to teach them how to manage money.
|1. Don't spend on what is not needed|
Teens are impulsive and as soon as they get pocket money, they tend to spend it on some games or food right away. Let them know that money spent is money gone forever. Once they have an understanding of this, they will eventually come to choose necessity over desire.
Remind them that what they want isn't always what they need. This will help them make better decisions. You can ask your child to pay their own phone bills at end of each month. You can also do it with any other monthly expense they have. It makes them responsible and takes them closer to a real-world experience.
|2. Make them earn it|
Once in a while get your teen in the habit of earning an extra buck with his effort. As a parent, you can always ask him to do some mundane chores to earn some reward points which he can redeem for money later. This makes him understand the relationship between hard work and money.
Once he realizes that the money he gets is hard-earned, he will eventually save it for something that he needs rather than spending it sloppily. He may save it for smaller things like buying a game console or long-term dreams such as buying a laptop for college.
|3. Develop a habit to save|
Things such as a piggy bank and saving jars teach children in their preteens that savings are good. Likewise, as kids grow, their needs and dreams grow too. Candy or a toy will be replaced by a trip to their favorite destination. So, they need a bigger and better piggy bank.
If parents could have their kids open savings accounts with an idea of long-term dreams, fetching good returns and, also, locking their capacity on liquid cash, it would inculcate a good saving behavior and make your kid money wise.
|4. Smart money management apps|
We are in a digital age where children as young as five know how to use a smartphone. Parents can make good use of it. There are many apps on smart money management which allow the user to manage their expenses, track them, and also set a budget so that they don't go overboard.
There are apps combined with cashless cards too. Parents can load money and track expenses while kids shop, eat and have fun without risking overspending.
|5. Let them make mistakes|
Teenagers are often impulsive. The moment you give them some pocket money for the entire week, they end up spending it the same day at a party with friends or watching movies. Once the money is spent, they would definitely come asking for more. As a parent, you should ask your teen to wait for the whole week and let them learn from their mistakes.
This will give them the understanding that cash in hand is best saved for needs rather than impulsive desires. It is always great to let your children make mistakes when they are young and when the money at stake is less. You can talk to them about curbing needless spending.
|To our tech-savvy generation, parents can teach them to manage their money via apps, have good money conversations, and make them envision long-term purchase goals. They will also be happy when there is more pocket money saved up.|