Financial planning is a topic of great depth and the exact nuances of the subject are not something which even grown-ups fully realize. The extravagant nature of many of today’s individuals definitely point to the fact that they hardly know anything of value when it comes to financial planning. However, as adults and parents, it becomes our duty to make teenagers around us realize the importance of financial planning because habits inculcated at such a young age will help them to understand how to monitor their finances when they grow up. Families who still believe in homeschooling take upon themselves the responsibility of not only their child’s education but also in offering financial literacy which is a vital subject for any growing teenager. It is important to understand what economics is all about and the drastic difference of wealth and poverty which in turn shapes the young lives of the teenager.
Tips for Teaching Teenagers about Financial Planning
1) Make sure that your children read about economics and the modern literary works of ‘Uncle Eric Book’s which is a must read for children who are in their middle school or high school. You can make it a point as parents to read it earlier so that it makes the lessons easier for you and you can solve your kid’s doubts quite easily.
2) Make sure that you often engage your kids’ in discussion on the topic of finances. It is often suggested that families should discuss about their monetary problems with their kids and kids should be taught the real meaning of money. You need to set an example for the kids about spending and saving money wisely so that the kids learn to handle money in a positive manner.
3) You can watch with your children economic news reports that are televised on local and national news outlets and you can talk about the various language and terminology used in every report as well as the facts and the speculations made in such reports.
4) Having a heart to heart talk about the financial ups and downs that you have experienced in your life will certainly serve as an eye-opener to your kids.
It will make them realize that you have seen grave difficulties and challenges before you have been able to lead such a great life. Being open to them about your financial troubles is a great way of letting them know that life is not the same at all times.
5) In order to teach them how interest rates work, you should take the help of spreadsheets and financial planning forms and you can make them practice real life problems such as ‘buying a prom dress with a credit card’ and can also show them how easily credit cards can be abused, and how that can have grave consequences in our life.
6) You should show them how to live frugally which will help them to save well for their future. It will also help them understand that living beyond your means will only lead you to trouble eventually.
7) Make your kids realize that there are hobbies which will actually help them to earn income and they can also use their hobbies and interests in the direction of earning their income.
Frank is a freelance writer and Education Director for Water Damage Local.com, servicing the flood damage and restoration industry.