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When your children become teenagers, they will become more interested in money and what it entails. They might want to get a weekend job or ask you questions about bank accounts or saving money. This is an entirely natural reaction and shows they are ready for more independence. While it might be tempting to change the subject, it’s your responsibility to teach your teen about money management. This is a skill they will use for the rest of their life, and the sooner you start to tackle it the better. So instead of feeling overwhelmed, use the tips and tricks in this guide to talk to your teen about money.
Encourage them to have a job
When discussing money with your teen, the topic of jobs is bound to come up. Make sure they realize the importance of working to get money and the type of jobs they could do. You could pay them to do chores around the house or sell items for you online on Tradebit Marketplace or Ebay. They could provide babysitting services, tutor kids from their school or get a paper round. You could also give them an allowance for helping you around the office after school. Spend some time researching suitable jobs they could try. You can then help them decide how much of their wages they should spend and save.
Set up a bank account for them
Take your teenager to the bank and talk to the staff about opening a bank account. The majority of banks provide a simple bank account for teenagers, but each will vary. So do your research to make sure you are getting the best option possible. Get your teen involved in choosing the account too. It will be useful when they start applying for jobs in future as most employers prefer to pay directly into an account. They might have to make a small deposit to open the account, so make sure they have this saved beforehand. You can also organize for their bank statements to be sent through the post to your home. Set aside a day each month where you and your child can discuss their spending and any issues they might be having.
Talk to them about debt and scams
Many teenagers go to college without knowing a single thing about debts or scams. This can make them easy targets for criminals and also puts them at risk of overspending. So in the most simplest terms possible, talk to your teenager about the consequences of debt. You could show them your bank statements or talk about the debts you currently have. You should also highlight the dangers of credit card scams and what to do if their money is stolen. This will be useful when they open credit cards in future, but will also keep them safe now.
With this information in this guide to help you, discussing money with your teen shouldn’t be a problem. The advice and guidance you give them now will help them grow into responsible adults who understand the value that money has.