As the saying goes, it's never too early to teach your child the importance of saving and valuing money. It's no secret that having excellent financial skills will have long lasting beneficial affects on your child, but it may be difficult to know how to start that conversation. Here are some excellent tips and tricks to teach your teen in a way that is both educational and motivational!
- It is important to distinguish wants and needs with your child in regards to spending money and saving money. Is that new 50$ Video Game a wise purchase? Or could they be using their money for something that is a necessity? These are things that are important to teach.
- When your teen is able to get a part time job, teaching them to put 10% of each paycheck into a savings account will encourage a healthy saving habit! If your child is too young to work, having them do chores around the house and putting a small portion of their earnings into a Piggy Bank will do the trick.
- Once your child has a cash flow, it is a good idea to teach them to monitor their spending habits. There are many great tools online that can help with this! But a good old fashioned journal works well, too! By separating spending into age appropriate categories (such as food and drink, video games, makeup, gas money, etc) your child can see how much they spend on certain items.
Don't wait to sit down and have this conversation! Children are sponges for information and the earlier they learn healthy spending habits, the better they will be as adults.