Things All Teenagers Should Know About Money
Brought to you by: Breez DeGuzman
When you were young, did your parents ever tell you that money doesn’t grow on trees? Have you found yourself repeating that mantra to your own children? It’s hard for kids to understand what it takes to make money, because they rarely have to earn their own. And when they’re teenagers, the allure of the latest fashions, newest electronics and other things that all the other kids seem to have makes them even more eager to spend, spend, spend.
The teen years are prime time for learning about the ins and outs of the almighty dollar. This is a time when kids become more interested in material things. It’s also a time when they can begin to work and earn some of their own money. But perhaps most importantly, it’s a time when they will soon be on their own and making financial decisions themselves.
It’s critically important for teenagers to learn about money and how to manage it before they leave home. Here are some things we should strive to teach them.
* Teens need to learn the difference between needs and wants. This can be a fine line for adults, and it’s even more confusing for teenagers. They need clothes, but they don’t really need those expensive designer jeans. Helping them learn to distinguish wants from needs is an important life lesson.
* Budgeting is crucial. Even teenagers should have a plan for how they will spend their money and stick with that plan. That doesn’t mean they can’t have any fun with it, just that they need to prioritize their spending so that the important stuff is taken care of first.
* A penny saved is a penny earned. This old adage is one that can make our lives much easier, and it’s best learned early. Teens should be taught about the benefits of saving, such as earning interest, having money in case of an emergency and being prepared for retirement.
* Don’t borrow too much money. Using credit responsibly helps us build up a good credit rating so that we can easily buy things like homes and cars. Using it irresponsibly leaves us saddled with debt and a poor credit rating. It’s important to learn this early in life rather than late.
* Taxes are a fact of life. Teens often feel that having taxes taken out of their earnings is unfair (as do some adults). It’s important for them to know why those taxes are taken out and what they pay for. It’s also a good idea for them to learn how to prepare their taxes correctly, either by hand or with software.
Learning about money the hard way can be quite painful. Taking the time to teach your teenager some important lessons could prevent him from making some big mistakes as an adult. He might not particularly enjoy it right now, but one day down the road, he will thank you for it.
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Tags: Prime Time for Learning, Teenagers, Things About Young People
