In a world where even teenagers can become millionaires and successfully manage their financial resources if they so please, there are no justifiable reasons why parents should not teach their teens to become money wise. Therefore, teaching teens financial literacy is something that should start early in every teen’s life, made possible by their parents who must teach every necessary skills on how to earn and manage money. Below are some of the things parents should teach their children on the best way to handle money.
Parents should be open to their teens by talking about how much they earn and how difficult it is to earn money. This will let teenagers realize that money is not plucked from the tree. Knowing this will put them in the right frame of mind to realize that hard work is the most inevitable thing when it comes to making money. And knowing this therefore, teens will grow to value hard work and the need to manage their hard-earned money.
Parents should help their teenagers open savings accounts to start the savings culture. Let them realize that when people fail to save, they expose themselves to the dangers of penury. Therefore, encourage them to save part of their stipends while spending less of it. This will be of immense help to them sooner than later.
Parents should also encourage their teens to earn their own money and be entrepreneurial. This is necessary as it will not only help teenagers become conscious of the need to make money right early in their lives, but also the importance of entrepreneurship in the money-making process.
Teach them the importance of budgeting before expending their money.
Let them learn to prioritize and also know the differences between their needs and their wants.
Teach them about setting financial goals.