It is difficult for teenagers to set goals as they change their minds many times along the journey. It isn’t easy for them to set goals with more spending choices than ever before with not only shopping venues but on-line purchasing.
How can parents help guide their teenagers as they prepare for future financial decisions?
Most goals should be practical to assist them with meeting their financial goals in the future.
One way to assist is to start early by providing your teenager with “pocket money” in turn providing responsibility for expenses and allowing to teach him how to budget so he will have enough for what he needs. Encouraging a part time job will give them more responsibility of expenses along with the value of being in the workforce.
Including your teenager in the family budget may be another learning curve. This may give them some insight into the financial realities that parents face about family money matters. Giving them the chance to see options and participate may assist them in financial decisions down the road.
How to teach teenagers about money | Real life situations
A fantastic way to teach your teenagers about money is to bring them into appropriate bigger ticket financial engagements. For example, if you’re a business owner, bringing them into how you manage your business expenses is a great introduction into the ‘real world’ of money and cash flow.
If you don’t own a business, another way to introduce your teenager to budgeting could be to fill them in on your next financial planning appointment. You can explain your investments, tell them about the ins and outs of your latest property purchase or talk through the depreciation on your latest BMW.
Ensuring they get in the habit of budgeting while they are young will help them to successfully maximise and steward the money they earn. This is an invaluable skill to maintain as they grow from their teenage years into their adult years. A great starting point may be to show them how to create their very own budget in excel.
Talk to Quill Group Today
If you need assistance with your personal finance or business accounting, talk to us today. At Quill, we are passionate advocates for all of our clients and our team is focussed on providing an experience, not just great service.
As the largest multi-disciplined financial services practice on the Gold Coast we provide a high touch personalised service delivered with competence, confidence and amazing results.