An important life skill is teaching your teenager to save money, it will help them throughout their life and may stop you going bankrupt because you have to keep bailing them out, due to bad investments or lack of saving money skills!
Have you started to teach your teenager the importance of saving money? If not, now is a great time to start. Saving money is something that a lot of adults don’t know how to do, which makes it even more special when your teenager knows how to save money. You don’t have to sit this one out though, you can easily teach your teenager how to save money and here’s how.
1- Be a good role model for them
At the end of the day, if you don’t know how to save money, it’s going to be nearly impossible to teach your teenager how to save money. Show them how you save your money! Of course, showing them that you budget your money is also a good thing.
2- Help them open a bank account
Although under the mattress makes a really good savings account spot, it may be time to teach your teenager how to open a bank account. A bank account is a skill that will follow them throughout their whole life, so it only make sense to help them with it. When they want to save money, they can put it in their bank account. This will make it harder to spend money too. Check out the best accounts for teenagers to decide which is best suited to your child and their needs.
3 – Teach them about spending, saving, and giving
If your teenager is working right now, you’d probably like them to save every penny that they can. However, it’s best to prepare them for how money works in real life. When someone gets paid, they have no choice but to spend some of it on bills and so forth. Your teenager may not have bills, so now is the perfect time to teach them about spending, saving, and giving. They will need to learn how to divide their paycheck up. Some they will get to spend, some gets saved, and then they’re able to spend an amount on giving or helping someone else.
4 – Explain to your teen why they need to save money
You can tell your teenager to spend money all you want, but they need to know why they’re saving money. Life is expensive and teens need to be prepared as well. From budgeting for clothes to paying for a car, to car insurance, to helping pay a phone bill – those expenses can add up! Not to mention, when it’s time for college or to get their own apartment, you need funds for that! It’s also nice to have some savings put away, so that when unexpected expenses pop up, they’re prepared. Have money saving talks with your teen, you’ll be glad you did!