Ways to Teach Teens Financial Responsibility

There are so many advantages of teaching kids about money and also financial responsibility. In all seriousness, giving teenagers the tools they need to manage their money including any money that they may already be earning will stand them in good stead well into adulthood. Some parents may not know where to start, so we’ve outlined a few ways to get your children into good habits.

Saving

Whether your teenager already has a part-time job or simply receives an allowance from you, they are likely to have some kind of small income. The impulse to spend this money as soon as they get it is huge. Sweets, trainers, tech – it is all tempting and readily available. Denying themselves can feel like a big ask, especially when their friends and schoolmates may be flaunting their new-found wares.

Tracking

Older teenagers may want to open a current account. There are obviously several different options to choose from, and both you – and they – should research the benefits and drawbacks of different banks and accounts before making a decision. One option that may appeal to the younger, more tech-savvy generation is an online bank.

Practical application

While teenagers are living at home, the stakes for them to save money are relatively low. This is, of course, assuming that room and board are paid for by their parents, as well as the odd holiday. When they grow up and need to pay for themselves, having money becomes a necessity rather than an added bonus.

Communication

When some teenagers become adults, things like the cost of central heating can come as a complete bombshell. You may not consider yourself to be a financial expert, but your teenage children are likely to know almost nothing about council tax, paying bills or the merits and dangers of credit cards.