The Financial Responsibility of Teenagers: What Parents Need to Know

Parents Need to Know

The foundations of character and the necessary skills are laid in early childhood. Yet, many parents wonder when and how to begin bringing the right attitude toward money in the child. And when you can start trusting a shopping trip.

Children must understand that money doesn’t just come in handy and that such kind as Trice loans can only be used in extreme cases. That material goods are the result of hard work. That is why it is so important to respect someone else’s and your work and to be able to manage the available funds.

The Basics of Financial Education

To teach your child to manage money properly, you need to instill the basics of financial education.

A Parent’s Example

Parents are the leading example, no matter how old their child is. Everyone carries parental attitudes and relationships throughout their life. Therefore, at all stages of personal growth, it is necessary to be able to watch one’s attitude towards finances.

If parents thoughtlessly take out loans and live in debt, their children will live the same way. It is because they have no example of financial literacy in front of them. Also, parents’ example shapes a child’s attitude toward their future profession.

Shared Issues

It is impossible to discuss all issues with the child. For example, he doesn’t have to know what salary his parents get. But to close the communication about this subject with your child is also wrong.

Parents and children should have everyday shopping and financial issues as part of their upbringing. For example, you can talk together about how much money can be allocated for a particular desired purchase and how you can do that.

Pocket Money

Having pocket money lays the first foundation for financial independence. As a teenager, a person learns to spend money not only on what they want but on what needs to be done. 

For example, to pay for communications on a cell phone. It is how one develops, assesses one’s capabilities, and attempts to allocate available funds rationally.

Bank Card

In the USA, 14-year-olds are allowed to have a bank card in their name. This is an excellent way to develop financial independence and the ability to deal with finances. According to a study by the US Federal Reserve, nearly half of all American teenagers have a credit card. 

Of these, nearly two-thirds say that they use their card for emergency expenses. One in five say that they use their card for everyday purchases, such as gas or groceries. 

Having a credit card can help young people learn how to manage their finances responsibly. It can also help them build a good credit history, which will be useful when they apply for loans or other forms of credit in the future. In short, there are many good reasons for teenagers to have a credit card.

According to the messages from the bank, you can understand what the child has done with reasonable and unreasonable spending. You can discuss important aspects with him and give sensible recommendations.

The Child’s Experience

Trust is an integral part of the child-parent relationship. You shouldn’t think for your teenager and teach him how to manage money. He should get this experience for himself. The trial-and-error method is a great way to do this.

The teenager should conclude why he did not have enough money for a particular purchase. Then, in the future, he should decide how to spend the funds so as not to repeat the undesirable situation.

Behavior Management or the Ability to be Independent

Pocket money should not be a way to influence or educate. It should certainly not be a way to manipulate your child. Yet, it is regardless of the parent’s mood. It is provided as an opportunity for the child to be independent.

Important! Do not use it as a stimulant for learning. A schoolchild should be able to exercise academic independence. Money, in this case, the contrary, will teach him to manipulate people to get what he wants. The same applies to monetary rewards for chores.

Money and Communication

You shouldn’t completely isolate yourself from a growing child. He needs to see and understand that his parents are open to communication with him and always ready to discuss emerging issues and different situations.

A teenager is an adult, but not yet an adult, and they need a lot of parental attention and participation. You can discuss an upcoming purchase with him if he asks for advice.

First Purchases

As we know, the foundation for financial independence is laid at preschool age. So you can start with a little. For example, a baby of 3-4 years old can be given to pay at the cash register, pre-spoken to him polite phrases to say to the cashier.

Later, you can send the baby to the store with older brothers or sisters. According to psychologists, the first independent attempt to make a purchase can be trusted by a seven-year-old child.

First Ideas About Finances

A child should understand that the parents’ purse is not limitless at preschool age. He should know where the money comes from and that it may not always be enough for the things he needs.

Cult of Money

Another critical issue about financial education and parental example is that some parents believe money is a significant component of human life and openly discuss the good things big money provides in front of their children. Also, many believe that having money is an opportunity to buy the whole world.

A teenager should know that material possessions do not lead to permissiveness and that there are things in the world that, even with large sums of money, will not provide complete happiness. Learning to discuss love and mutual help with children, especially teenagers, is essential. Therefore, the attitude towards other people should not be based on their well-being.

Tip: It is necessary to try to instill in your child from an early age the values not related to the material side of life. Cartoons, books, and fairy tales that teach about kindness and the essence of human relationships can help in this.

Important: When communicating with your teenager, you must behave so that he does not feel he is being lectured or that his opinion is being imposed on him. Parents who act this way can isolate their children and leave their trust circle.

Attitudes Toward Part-Time Jobs and the Money a Teenager Earns

Teenagers, as a rule, start trying to earn their first money on their own. You should not fear this. On the contrary, such a desire should be encouraged. If the parents and the child have trusting communication, his desire to become less financially dependent will only make him happy.

It is essential to understand that the money the teenager has earned belongs only to them, and a parent has no right to dispose of it, much less take it away. Besides, telling him how this money should be spent is unnecessary. But an attempt to buy something for the house should be encouraged. It encourages the teenager to pay attention not only to his needs.

Discussing Opportunities to Save Money

Teenagers, by their very nature, are maximalists. You can and should talk to them about saving money and the ability to save. Not superfluous will be conversations about the features of the country’s economy naturally, if the teenager is interested.

Features of Discussing Plans for the Future

It is perfect if the teenager imagines his future profession and discusses what he wants to become with his parents. In this case, it is necessary to show maximum respect for your child’s choice and not to discuss the possible salary, especially if it is low. Of course, a good wage is significant in life. However, the possibility of self-realization is much more critical.

The financial education of a teenager is as essential as the education of morals and family values. By trusting their child to be independent in these matters, parents give them a sense of importance and support. All of this leads to a mature personality, capable of managing their finances and life.

Stay Connected

Read On