Monday, March 27, 2017

5 Ways to Teach Your Teens About Money

I believe that we, parents, should begin teaching our children about saving money while they are young. I have made a post four years ago about some ideas on how to do this with kids (here is the link).

teenage girl
Image by PictureYouth via Flickr, CC BY 2.0
I think that we have achieved a certain measure of success. I'm happy that all my five children are
able to save some money in the bank. The money were from gifts they receive as well as from their school allowances. They are also able to buy some things they want. For example, my two boys really want to have their own cellphone. We agreed that they will pay half the price of the cellphone, so they saved money for that.

Some of my kids are teens now and it's up to us parents to make sure that they have acquired the essential money management skills. It's not easy because their peers or barkadas have a stronger influence on them now. Sometimes, what their friends have, they also want. Their friends also ask them to go out from time to time, which means spending money. So, we need to reinforce what we taught them before about needs and wants.

Teens need to be a little bit smarter with their money and how they do things. Being proactive parents and teaching our teens can help them be financially stable and independent when they are adults.  The following are five ways we can employ to teach our teens about money.

Teach Them to Buy Second Hand Items Instead of New

It's okay to buy some things that have been used before. For example, my daughter likes to read books. Sometimes, we simply go to Books for Less to buy used books which are cheaper  Other used things that can be purchased include DVDs, and CDs. Buying used things does not only saves money but helps the environment as well. Just be sure to talk to them about how to pick used items that are still worth buying.

Create a Monthly Budget Together

Budgeting can be taught to your teen in simple ways. For example, your teen wants to have something. Instead of buying it for him, help him figure out how much they need to have to buy the item and how much they need to save per month.

Give him some ideas how to come up with the amount each month.. Maybe he can bring more baon (snacks) to school instead of buying from the school canteen  Or maybe he can find some simple way to earn.

Think of Ideas That Could Help Him Earn Some Money

You may agree or disagree with the idea that teens can get a job like cleaning the garden for a neighbor or something. But, there are other ways of earning some money. For example, he can be a teen entrepreneur. During summer vacation, maybe he can sell some goodies like ice candy or snacks in the neighborhood.

I remember last school year, there were some PUP students who came to our kids' school and taught the grade 5 and 6 students to be kid entrepreneurs. They taught the students to sell some products in the school. I think Janel and her classmates sold banana choco ice pops, while Kristel and her classmates sold nachos.

I also read of a story from Tiffany Lambert (an online marketer I'm following), that she guided his son, who was also gifted in writing, to sell some of his articles online for his college tuition. His story was inspiring.

Talk About the Costs of College

Your intention is not to frighten your teen about what going to college entails. But, it would be good for them to know that college is not cheap. Because you're paying for his tuition, which is a priority, there are some other things that you might not be able to give them (not a priority). Borrowing money is not a good option (we don't encourage our children to do this) unless there's really no other way. So, it is best to teach them to be more responsible in spending their money.

Teach Your Teen the Importance of Giving

For me, giving the tithe and offering is important because it shows our gratitude to God for the blessings He gives. I want my kids to be thankful and not greedy. I can't fully explain it, but every time we give (to God or to somebody in need), it chips away our selfishness. So, definitely, giving should be part of what they need to learn to do.

Final Thoughts

I must admit there are still some things that I want to do in order to teach my teens to be money smart. Well, there's still time to teach them and I hope they will learn and be truly prepared to be financially stable and independent someday.

How about you? How are you teaching your teens about money?







4 comments:

Mommy Maye said...

This is very helpful. Ako naman I started teaching my son as early as now. Akala nya kasi lahat pwede nyang bilhin. So sinasabi ko lang muna sa kanya yun halaga ng mga bagay bagay. Minsan nasa mall kami tiningnan nya yun price tag, biglang nagsalita "ang mahal naman mommy." Napatingin tuloy sa amin yung mga nasa paligid namin, hehe.

Chin chin said...

Nakakaaliw naman si Matthew. I hope yung mga kids ko mas maging money wise din.

Mav Duran said...

So true! Parents ko din ang unang nagturo sa akin about money ever since bata pa ako. Kaya hanggang tumanda ako daladala ko lahat ng mga lessons nila sa akin and I am very thankful for that. Natuto ako maging masinop and magsave. Natuto din ako makuntento kung anong meron kami :)

Chin chin said...

I agree, Mav. Many of my money saving habits ay nakuha ko from my parents. Although sometimes may other influences din along the way. Pero mostly yung dala ko from pagkabata ang nasusunod.