Thursday, May 7, 2015, AM | Leave Comment
Personal finance is one of the skills that you can learn while you’re trying to learn how to ride a bicycle, but it’s also a skill that will serve you well for the remainder of your life. It can be the single skill that allows you to balance a mortgage payment, the bills, a car payment, and support a growing family.
The problem is that teaching it to your children can be as difficult as teaching your family dog to drive a car.
While you may feel like you have a better chance with Fido, don’t decide that your teenagers are a lost cause yet.
Here are four amazing tips that will help you teach your teens how to manage their finances while preparing them for adulthood.
How to Manage and Use a Bank Account
The first step any adult should take in teaching their child how to become financially responsible involves acquiring a checking account and a savings account.
The best part is that some accounts can be acquired for free. You may not even have to pay for your teen’s accounts if you already have an active account with your bank.
Acquiring these things comes with added benefits. Your teen will gain access to debit cards and checks. They’ll begin to learn about how the banking process works. They may even learn how to begin saving using things like savings accounts, bonds, or even mutual funds.
Having these accounts is much like showing your teen to the door that leads to the world of personal finances.
Thinking About Finances Like Adults
Teens who talk with their parents about personal finance were found to be considerably better off with their own spending habits. They knew more about investment options, how to manage their money, and how to perform other activities necessary for having a happy and healthy financial life as adults.
That is why talking with your teens like they are adults can be considerably helpful when it comes to talking about personal finances.
You don’t want to lecture them about everything. You want to give them the freedom to make mistakes. You need to encourage them to correct their mistakes.
When you talk to them about investment options, savings accounts and other financial decisions involving how they spend their money, it’s important to teach them to think through the cost versus the benefit of something. This will help them make responsible decisions with their finances when they grow older.
Proper Use of Checks
Checks may seem archaic, but they are one of the most rudimentary building blocks for acquiring strong personal finance skills. They teach you how to balance your funds, how to prevent yourself from spending too much, and they let you know when you can pat yourself on the back for saving a little more than you planned.
They’re also great for keeping records of business expenses, education purchases, and other items that can be deducted from your taxes.
The best part is that personalized checks from places like Checks-superstore.com can add a stylish and functional way to utilize your bank account. That’s why encouraging your kids to use them is one of the best decisions you can make.
The only thing you need to be careful with is to ensure your teen knows how to balance their checkbook properly. You want to teach them to balance their checkbooks before checking their balance at an ATM.
If you do things right, then your teen may even score higher in their mathematics classes.
How to Invest
One of the greatest rewards teens can experience is earning their first bit of hard-earned cash. They are the only ones who can lay claim to it, so it has that extra special feeling.
You should work with your teen to help them make money. Help them acquire a new job. Give them some help in learning about investment options. Do whatever you can to help them earn more so that they can learn to fund their own lives.
Teaching Your Teens to Make Wise Financial Decisions
Teaching your teens about personal finance is one of the most difficult tasks you will ever attempt, but the reward is awe-inspiring.
If you teach your kids to be successful with personal finance, you may find that they will thank you some time in the future. They may even buy you a new car or house to show you their appreciation.
Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.