Helping teenagers manage money.
Learn to demonstrate how good money habits work in their favour in the short and long term.
Having a spending plan.
You don’t need to be managing a household worth of expenses to see that having a simple spending plan can still have the benefits of setting good money management skills. A good plan will have set amounts for spending on weekly fun and entertainment as well as money set aside for saving for different milestones. As with younger children, encourage teenagers to split their money in three: save, spend, and share.
Demonstrate positive savings habits
Your teenager is likely to be more motivated when they have a savings intention in mind. Let’s say a short-term objective may be for a new pair of trainers, while a longer-term ambition at the same time might be for spending money for a trip the family is taking later in the year or for their first car.
Think about putting a little bit away on a regular basis
Encourage them to put a little bit aside each time they get paid, both for smaller and larger milestones. Contributing to a savings account on a regular basis is a great way to see money grow over time while also developing the habit of setting money aside for a rainy day (the unplanned events like their first car breaking down).
Set the right example
As in other areas of life, teenagers are likely to copy the financial behaviour of their parents. That means if you’re in the habit of saving up to buy something, they may be more likely to do the same.
One way to set the right example may be to include them in some of your financial decisions. If you can, send them off to the supermarket with a strict budget in mind, and whatever money might be left is theirs… provided they got everything on the list.