Most schools don't teach financial literacy to teens so it's up to us, the parents or caregivers, to step up and help build their financial knowledge.
A strong comprehension of proper money management will set them up for a strong financial future.
There are many ways you can help guide and teach them -- Keep reading to find out how.
HELP THEM UNDERSTAND "WANTS VS. NEED"
A need is something you need everyday: food, clothing or shelter. A want is a nice-to-have: a vacation or newest video game.
A budget can help student visualize how much they have to spend on their "wants".
ENCOURAGE THEM TO SEEK EMPLOYMENT
This can be a side hustle (petsitting or graphic design), one time jobs (helping delivering flowers for mothers day) or part time jobs during the summer.
Having a job will help them to understand "the value of a dollar", which may influence them to make better financial decisions.
TEACH THEM ABOUT GOOD DEBT VS. BAD DEBT
It's important they understand the implications of things like: Excessive credit card debt, student loans, fixed rate vs variable rate.
A bankrate survey showed that 43% say they don't know the attached interest rates to their credit cards-- the average credit card rate is nearing 20%!
(...And Avoid Student Loan Debt)