Money Management

Why You Should Teach your
Teenagers Money Management

Teenagers Money Management. Imagine being 22, about to start on your life in your chosen career, and being bogged down with thousands of dollars of debt? How long would it take you to buy your first car? Save for a down payment on a house? Or pay off that debt at all?

Imagine the stress your kids will face as they start out their adult life? This is supposed to be an exciting time in life. Unfortunately this is how the majority of kids are ending post secondary schooling and starting out in the workforce! Imagine the stress they will face.

You know that when your kids go off to school or leave the nest, not only will they have to learn independence from you, they will also learn financial independence. If there isn't any training before then they are thrown into the deep blue finances sea without a lifesaver!

Do you want this for your teens when they start their adult life? I doubt it. So start now. Teach them what they need to know about managing money now not later!

Teach them to be financially happy and healthy adults now and to save and plan for their future while they are still in their teens! These are all good reasons to teach your teenagers money management!

Teens Learn About Money from Their Parents

How often do your teens come to you begging for money? I bet it's often! What if they didn't have to do that anymore? What if they learned to live on a budget from as young as 12? Would that ever make for a more peaceful home life!

Kids and teens learn by watching how you deal with your money. Since "how to manage your money" isn't taught in the schools, it is, by default, taught at home. Unfortunately parents aren't teaching their teens very good habits. This is mainly because parents don't have very good habits.

Whether or not you are actively teaching your teens about money is irrelevant. Kids learn by what their parents do. So chances are your teens will have the same habits as you have. Or they may reverse it and do the exact opposite. i.e. if you are stingy with your money they may spend it freely, or if you are always struggling then they may become obsessed with saving money and miss out on life.

They learn many things from you about money like How you talk to those you love about money or how to hide things about money. If you argue with your significant other about money - guess what is likely that your teen will do with their girlfriends or boyfriends now and then their significant other in the future!

A survey done of parents and teens in Canada showed that parents are not teaching their teens about money. The study was commissioned by Credit Canada, a not for profit credit agency. It showed that only 14% of parents are teaching their kids about money, especially the importance of saving money. It also found that only 56% of parents set a budget and only 25% of teenagers follow in their parents footsteps. It also showed that 33% of parents place importance on saving money consistently, and only 20% of teenagers do.

If you don't teach your teenagers money management then guess what? We end up with another generation deeply in debt and not equipped to deal with their personal finances.

So the best way to teach your teenagers money management - teach by example - manage your money well, and share with your kids what you have done well and what mistakes you have made. Teach them to be responsible with money and what the rewards are if they are! That is the best lesson you can have for them!

If you are just starting to learn about money management yourself, then involve your teens in the process. Learn with them! Show them it is never to late to learn how to save and manage your money!

The earlier you start, the less resistance you will have as they won't have developed bad money habits yet. Learn more about when to teaching teen money management or how young teens make money.

For more on teaching your kids about money check out Kids and Money

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