What is the Best Piece of Financial Advice Every Parent Should Give His Teenagers?
It is alarming that most primary and secondary schools across the US do not teach teenagers finance and the utilization of money. Thus, it is on parents to take the matter into their hands and have financial talks with their kids. A Gallup survey reveals that 60% of American college graduates have no idea about money when they leave college. What is more gruesome is the fact that as they graduate they are drowned in student debts.
That is why it is a worthwhile idea to avoid your teens from this dilemma. Where to get started, you may ask? Well, it all begins at home. From an early age, parents must have financial talks with their kids. So, as they grow up, they will have a basic understanding of finances. If you are not used to having financial talks with your teens yet, today is the best time to kick off. More than ever before, today teens are in need of financial literacy.
Nevertheless, an ideal scenario could be to have the fundamental money talks with your kids. These could be things like: How to earn, save, utilize, and invest money? Likewise, you should make your kids familiar with taxes, debts, student loans, and credit card loans. Other grave issues may include financial crisis, saving for retirement, and handling household expenses.
Here is one of the best pieces of financial advice – and talk – every parent should have with his kids:
Understand the Difference Between Needs and Wants
It is not unheard of that teens to spend money on luxury stuff – on things they do not need. Be it toys, games, or mobile phones, kids just want to get it done. However, it is up to parents to handle that since kids do not know how hard-earned that money is. Similarly, they do not really discriminate between their wants and needs.
This is where parents come into play. As a parent, you should have a friendly talk with your kids and make them understand their needs and wants. However, keep in mind the discussion should be respectful and logical, and ensure that you do yell at them. With such a sensible discussion, not only will you develop a friendly connection with your kids. Rather, you will imbed in them a sense of responsibility they will live with for the rest of their lives.
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