Parents who make it a point to save instead of splurge will find it far easier to pass on the passion for prudent money practices to their teens.
The best mimics in the world are children. Most people who can see over the steering wheel tend to forget that kids take in everything around them, especially the behaviors and habits of their parents. When kids get a bit older, they may turn off the mime routine, but that doesn’t mean they’re not picking up cues from their elders. Moms and dads need to realize that how they handle their money matters when it comes to their teen’s future tendencies. Don’t believe it? Studies show that people with parents who set good financial examples are more likely to have a secure financial plan and feel confident in their financial future. The following are some simple ways for parents to set a good example, as well as some easy tips on how to open up a dialogue with teens regarding financial responsibility.
Save
You have to have money in order to teach your teens about the importance of it. Luckily, the easiest way to show kids that saving is important is by following your own advice. Parents who make it a point to save instead of splurge will find it far easier to pass on the passion for prudent money practices to their teens.
Shop smart
Shopping can be a pleasure or a pain, depending on the person, but focusing on the best bargains is one habit that every parent should pass down to their kids. Not every product needs to be brand name, and the ability to sniff out a deal will serve young people well when it comes to their financial futures.
Learn
All of life is a learning experience, so never stop trying to find out more about the world of personal finance. Don’t know something? Ask! There’s nothing embarrassing about learning more. The only embarrassing thing is staying ignorant. Teens who see that their parents are always trying to bone up on ways to spend and save responsibly may pick up the habit themselves.
Money talks
Of course, the best way for a parent to make sure their teen is working on their financial literacy is to address it directly. There’s no need to turn it into a “serious talk,” however. No teen wants their parents to sit them down for a long and awkward conversation (regardless of whether birds and/or bees are involved), and drawn out speech about the importance of financial responsibility is likely to be met with glazed eyes and the sound of crickets. The key is to keep it light, simple and straightforward.
Next time everyone’s gathered round the dinner table, try broaching the subject. Getting a job, opening a savings account, paying for college - these are all subjects teens will be interested in. There’s no need to make it feel like homework. Growing up can be scary, but showing your child that you’re there for them when it comes to financial matters can go a long way toward putting them at ease.
It seems like every teen says they don’t want to be treated like a child. When it comes to their finances, treating them like an adult can be the best way to teach. Get them involved with the day-to-day financial activities, be honest and upfront about financial matters, and provide them with a role model when it comes to financial responsibility.