The majority of parents complain that their teenage children do not listen to them. However when it comes to money related aspects, the opposite is true. Teenagers are usually glad to hear parent’s advice as to finances. That is the reason for the parents to be a good model for their children in money matters.
Some Tips on Teaching Teenagers Money Saving
In several recent years, billions of dollars were earned by teenagers working part time or in summer. Some of the young people have spent their earned money, but there are others, who saved a certain amount or even most parts of their earnings for some big purchase, or educational purposes.
Children nowadays are more aware of the ways and sources of family income as well as its financial status. When they start their own independent life they apply the money-spending patterns of their family. That is why parents are responsible for teaching their kinds the principles of wise approach to money and should explain the way the service providers like Cash Advance Loan Store company work.
There are some ways you can use as a parent to teach your teenage child the art of saving those hard-earned means:
1. Be an example.
Living in the family, children feel the lifestyle and see the way money is spent. Give them as much explanation as possible as to how to save while shopping for food or maintaining auto. Share the principles you use for your household budget. As soon as your children become adult, they will do the same things you do when means for household needs are required.
As soon as your teenage child gets a bank account set under his name, he will immediately realize that he is now financially responsible. Devote some time to explain your kid how the bank account is managed and which benefit can he get in case of saving a certain amount. The means saved can once be spent for college education or even a new personal auto. The additional advantage of big purchases, like a car, is the sense of accomplishment, when the savings are materialized into a definite thing to demonstrate. Don’t forget to check for special benefits offered to the customers of such an early age in the banks, by the way.
3. Create a “spending plan”.
When a child hears about budgeting, he often tends to think it will mean restricted spending for him, but a good idea is to create a “spending plan” for your teenager. This trick will not only bring excitement to him, but will make him think about the ways to spend their own means in a wise way. Suggest making a list of earning versus outgoings and try to give your child the understanding of the necessary things and the luxury ones, which people can do without.
4. Make a “mock” investment in the stock market.
Make your teenager aware of the financial options he has. Introduce the business news section of your daily newspaper to your child and suggest him to make a “mock” investment choosing among the companies manufacturing good she likes. Monitor the stocks together and depending on the situation there your child will gradually learn to make right investing decisions in future.