YOUR COMPLETE MONEY MASTERY BLUEPRINT: FINANCIAL LITERACY FOR TEENAGERS (1ST PART)

Introduction 

Financial literacy and accountability are essential life skills that must be taught, much like many other talents. If you are a parent of a teen, you should be aware that the teenage years are the best time to teach your child about money.

Time flies, and before you know it, they will be adults who must manage and make their own financial decisions. Only one in ten youngsters in the world according to studies, can be considered financially educated.

Continue reading if you don't want your child to join the other 90% of teenagers. Let's discuss the 10 fundamentals of financial literacy for teenagers.

5 Fundamentals of Financial Literacy for Teens would be discussed in this post. The remaining 5 would be discussed in our next post 

Let's examine teen financial literacy and the lessons you should educate your young children. Collectively, these lessons will aid children in comprehending the value of money and financial planning.

Your teens will be grateful to you for the rest of their lives if you are successful in raising their level of financial literacy with these strategies.

1. USE A BANK ACCOUNT TO TEACH FINANCIAL RESPONSIBILITY

Open a bank account in their name instead of boringly lecturing them on how to manage their money. Numerous banks provide unique accounts for young people.

These accounts have straightforward terms and conditions so that teens can use them independently. Setting up a bank account for a child provides them with training on two fronts.

It first teaches students all the crucial banking terminology they will require in the future. When they open a legitimate bank account as adults in a few years, they will be aware of the process and the kind of account they require.

Any youngster who has a bank account learns how to manage their money. The ability of a youngster to manage their finances is greatly influenced by seemingly unimportant features like a monthly financial summary, transaction notifications, and profit profiles.

Teens will be better able to prevent errors in the future if they practice these skills at a young age with your support.

2. ENCOURAGE THEM TO MAKE COLLEGE SAVINGS

Students across the world experience financial difficulties when they attend college. The state of the economy as a whole is a major factor. However, a person's choices might make it simple to effectively navigate difficult financial waters while in college.

Encourage them to contribute a portion of their earnings to college savings account if they have a summer job or part-time employment. Through this practice, they will develop the habit of saving and learn the value of money in college life. By starting early, they will also save money on their student debts.

3. ASSIST THEM IN COMPREHENDING THE DISTINCTION BETWEEN WANTS AND NEEDS

Teenagers tend to be impressionable, and their impressionability might have an impact on their financial situation. Even if kids might recognize the distinction between wants and necessities, you still need to discuss this important contrast in terms of money.

What teenagers see online and what their peers do greatly influence them. Teenagers frequently overlook this crucial distinction as a result of these outside forces. You must thus continually reaffirm this distinction to them using concrete instances.

For instance, you need to teach them that taking money out of retirement accounts to duplicate a costly birthday theme they saw on Instagram is not at all a good idea.

Your adolescent should be able to distinguish between what is a genuine asset that has the potential to generate value and what is not.

They need to understand that learning this crucial financial information requires continual effort and that they must distinguish between wants and needs.

4. TEACH THEM TO RESIST MAKING IMPULSIVE PURCHASES.

Everyone, not just teenagers, is susceptible to the phenomenon of impulse buying, which is not new. E-commerce has completely simplified purchasing, so one must be mindful of their shopping/buying habits to prevent overspending.

Teenagers frequently spend their hard-earned earnings in a flash due to impulsive purchases.

Again, you must set an example for others. You can't tell your children not to develop this unhealthy behavior if you are receiving a package under your name every other day that contains some unnecessary thing.

5. HOLD A TALK ABOUT THE DANGERS OF CREDIT CARDS OR BUYING ON CREDIT

As soon as a teenager turns 18, credit card companies start pestering them. Credit card companies frequently take advantage of their potential young customers who are already stressed and frantic about paying for college.

It is your duty as a parent and legal guardian to teach your children the risks of credit cards and how to use them responsibly. You must explain to them both how relying on credit cards can result in a cycle of debt and how you can profit from using them safely.

By eliminating superfluous credit cards or buying on credit and reducing your use of the ones you have left, or reducing your debt, you should demonstrate to them what you preach.

In Conclusions 

Just remember that expressing anything to teenagers won't make them believe it. The dishonesty in your motivational speech will be obvious to them. In many instances, these pointless discussions might be detrimental. Be truthful in your dealings and justify what you say by actions.

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