Equip your teenager with essential money management skills. Discover tips and tools to help them make smart financial decisions. Read on.
As your child gets older, it’s a good idea to give your child more control and responsibility over their own money and how they spend it. With guidance, this will help your child learn important and lifelong money management skills.
It might help to work out some clear guidelines about using money with your child – for example, discuss how much can go into savings, spending and donating. And it’s important to guide your child towards saving money, rather than spending it all.
Your child will make some mistakes with money management, whether it’s spending a week’s allowance in two days, or spending a lot on something that doesn’t seem so good once they’ve bought it. Instead of giving your child more money, it’s a good idea to talk with your child about what they learned from the experience and what they might do differently next time.
- Encourage your child to price and manage their weekly costs. This might include school bus fares, social outings and so on. A budgeting app can help.
- Let your child buy birthday, Christmas or other presents for their siblings or other extended family members. Working out what to spend will help your child learn to plan and budget. And your child might also better appreciate the gifts they get from others.
- Give your child a budget for their birthday party to decide what to buy or where to go.
- Step in to help the first time your child runs out of money, but let them know that next time they’ll have to deal with the consequences.
If your child wants to start earning their own money, there are many ways you can support this.
Some families give children and teenagers pocket money. If you decide to give pocket money, you might want to think about whether pocket money includes payment for help around the house. Some families pay children for a few extra jobs, particularly if it helps children towards savings goals. But other families feel that everyone should contribute towards household jobs without expecting payment. There’s no right or wrong – it’s about what suits you and your family situation.
Your child might also be interested in a getting a part-time job. A part-time job can also help your child build skills, experience, confidence and contacts for future employment.
- Encourage your child to always save some of their pocket money or birthday money.
- Help your child set short-term and long-term savings goals. If your child is saving cash, you can use a chart to track how close they are to their goals.
- Help your child set up a savings account with restricted access, making it harder for them to spend their money straight away.
- Try a pocket money app. You can use it to set a savings goal with your child, choose a pocket money amount, and track saving and spending.
- Encourage your child to shop around for the best savings account. Many banks offer no-fee accounts for people under 18 years.
If you like to read more click here. You can click here for Website.