The Guide To Getting Your Teen Interested In Personal Finance
This article has been written to teach people how to get teens interested in personal finance. Nevertheless, before beginning this article, it's important that you know that a lot of patience will be needed as well as 30 minutes of your time on a weekly basis.
The best way to start to get your teens talking about personal finance is to gain their attention and lead by example by applying everything that you are trying to teach them in your own life. You may want to consider getting your teenager a pre-paid debit card or either an active checking account. If you decide to use the credit card, you should set the limit extremely low, around a hundred to two hundred dollars.
After doing this, you should make it clear to your teen that money doesn't simply grow on trees and that by giving them such a responsibility is a huge risk for you. You should make sure that they fully understand that there could be consequences for not being financially responsible with their money.
The third step should involve you explaining all the mathematics involved in maintaining an account to your teen and seeing how this can work. If your teen is able to avoid financial problems, they you should congratulate yourself for a good job. On the other hand, if they encounter financial problems, you should take the time to talk to your teen and explain why experienced problems.
This may be the result of an honest error such as forgetting to transfer the allowance over to the account so that you will need to check out things and make sure it never occurs again. Until these accounting problems are fixed, you should continue to explain the situation to your teen.
Step 4 should involve teaching your teen how they can keep up to date with their account online. Nowadays, modern banking systems make use of the Internet and allow you to check your transactions minutes after they have been done.
Step 5 involves you giving your teen a reward if they have done a good job with their personal finance. You should continue to teach your teenager important money management tools every month.
In the event that you are ready to set-up an account like this for your teenager to see how he or she manages their personal finances, your local bank may be able to set you up with a debit card for free, and they will automatically transfer the pre-determined amount of funds into the account on the dates that you require. Be sure to take advantage of their electronic banking system and free services, especially those that you are familiar with.
The most important thing is to keep any debit or credit account balance at a very low level because teenagers tend to buy things on impulse. You certainly don't want to lose a lot of hard-earned money on an experiment testing your teen's ability to manage their personal finance.
The best way to start to get your teens talking about personal finance is to gain their attention and lead by example by applying everything that you are trying to teach them in your own life. You may want to consider getting your teenager a pre-paid debit card or either an active checking account. If you decide to use the credit card, you should set the limit extremely low, around a hundred to two hundred dollars.
After doing this, you should make it clear to your teen that money doesn't simply grow on trees and that by giving them such a responsibility is a huge risk for you. You should make sure that they fully understand that there could be consequences for not being financially responsible with their money.
The third step should involve you explaining all the mathematics involved in maintaining an account to your teen and seeing how this can work. If your teen is able to avoid financial problems, they you should congratulate yourself for a good job. On the other hand, if they encounter financial problems, you should take the time to talk to your teen and explain why experienced problems.
This may be the result of an honest error such as forgetting to transfer the allowance over to the account so that you will need to check out things and make sure it never occurs again. Until these accounting problems are fixed, you should continue to explain the situation to your teen.
Step 4 should involve teaching your teen how they can keep up to date with their account online. Nowadays, modern banking systems make use of the Internet and allow you to check your transactions minutes after they have been done.
Step 5 involves you giving your teen a reward if they have done a good job with their personal finance. You should continue to teach your teenager important money management tools every month.
In the event that you are ready to set-up an account like this for your teenager to see how he or she manages their personal finances, your local bank may be able to set you up with a debit card for free, and they will automatically transfer the pre-determined amount of funds into the account on the dates that you require. Be sure to take advantage of their electronic banking system and free services, especially those that you are familiar with.
The most important thing is to keep any debit or credit account balance at a very low level because teenagers tend to buy things on impulse. You certainly don't want to lose a lot of hard-earned money on an experiment testing your teen's ability to manage their personal finance.
About the Author:
Jenni Snook is the chief author of http://www.HealthyWealthySoul.com, a website dedicated to providing people advice and resources on personal finance for teens to achieve both financial and spiritual happiness in their lives.
posted by Credit Counseling at
12:45 PM
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