How many times have you heard somebody say that they wish they had learned about money earlier? Maybe you’ve even said the phrase yourself. Wished you had a better financial education from the start so you could avoid some of the hefty mistakes that we can pay for well into our adult life. Well, you cannot go back in time, but you can make sure the teenagers in your life learn these lessons early on – and get to avoid the costly pitfalls. This might not feel like the most exciting subject to a teenager, but it might just be the best gift you can give them. Q1 2022 hedge fund letters, conferences and more By getting their finances off to a great start they can benefit from things such as budgeting skills, larger savings, fewer debts, and compound interest. And just by having a thorough financial education , they’ll be more equipped to avoid common money mistakes and make smarter financial choices.
These are the ten best ways to guide teens about money in 2022.
One of the first things you can do to help your teenagers learn about money is to give them a monthly allowance . That means instead of them coming to the bank of mom and dad every time they need something, they get a monthly amount to budget themselves and decide what is a priority or not.
It’s up to you whether you want to equate this monthly allowance to specific chores around the house, or to rules such as ‘going to their violin lessons’ or ‘getting B’s and above at school’, for example. If your teenager struggles with motivation then adding a financial reward can be a good way to incentivize them, and teach them how good it feels to earn your own money.
Alternatively, the concept of an allowance can also just be an agreed monthly payment, that usually increases with age.
start=”2″> Encourage them to get a part-time job or side hustle
One of the greatest money lessons you can give a teenager is the skill of discipline and hard work. By having this ingrained from a young age, they’ll naturally grow a better appreciation and understanding of money than somebody who doesn’t start working until much later in life.
Having a part-time job , whether that’s after school, on the weekends, or during the school holidays, also teaches valuable social skills and can grow them as an individual. Popular part-time jobs for teens
The responsibility and grind that comes with a part-time job will quickly be rewarded when your teenagers start earning their very own income. However small, having your own money is an exciting time and for teenagers with little costs, this can vastly improve their quality of life. Retail
Hospitality
Lifeguard
Babysitting
Delivering newspapers
Fast food server
Side hustle ideas for teenagers
The teenage years are the perfect time to start a side hustle because you have free time and no responsibilities. Without the fear of failure hanging over your teenagers, they can afford to spend time experimenting and trying out what side hustles they enjoy most before they have bills to consider.
They’ll also learn valuable entrepreneurial skills, and if they do well could create the beginnings of a business to continue in years to come. Tutoring other children at their school
Creating a blog or Youtube channel
Teaching languages online Selling physical products Digital products online with unique selling proposition Guide them about budgetsOne of the first financial lessons you need to guide your teen is how to budget. No amount of money earned makes up for a lack of budgeting, because until one has control of where their money goes it can leave as quickly as it came. As John Maxwell said, “A budget is telling your money where to go, instead of wondering where it went.”For this reason, budgeting is something your teen needs to understand before they go off into the world and start making their own money. Ideally, you would start teaching them about budgets during childhood with their allowance or money they’re gifted. Teaching them simple lessons of prioritization, and when they get to the store to spend their money making sure they stick to the agreed budget and not caving and topping up their funds for them when it comes down to it.If your child doesn’t have money of their own yet, you can try getting them involved with the family budget. Not only will this give them a greater […]
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