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3 Ideas for Parents to Teach Teens on How to Save Money

3 Ideas for Parents to Teach Teens on How to Save Money

School teaches your teenager all kinds of knowledge covering different aspects, but it will not often teach your kids about how to make, spend and save money. Hence, it is your responsibility, as parents, to get your teenager understood and trained to save money. Such money saving ideas and lessons can set your teen ready for the future financial freedom and success. It is a good timing to begin teaching your teenager on handling money when he/she starts to ask for things that are not necessary so that your teen will soon understand the value of money.

1. Encourage your teen to work around your neighborhood.

The first idea is to encourage your teen to look for jobs around your neighborhood—even some jobs may sound odd. Such jobs may include mowing lawns, babysitting or other tasks that your neighbors need. By doing so, your kid will have a chance to bring income in when still young and the your teen can learn the responsibility of earning money as well as the fact that the money earned is directly related with the work and effort done. The income intrigues the teen’s mind to start saving money.

2. Set a budget for your teen.

Sit down with your kid and help him/her review the monthly bills including cell phone, car insurance, food expenses, etc. Give your teen a basic idea that how much money is needed for him/her each month. As mentioned in Tip #1, your teen may be able to bring certain incomes each month that can cover a part of the monthly expenses, for example, the car insurance. Although the income is not significant, you can teach your teen about the responsibility of contributing to the family and the car that is being driven. This process also teaches your teen how to start budgeting and your kid will learn that each month a certain amount money should be put aside for the auto insurance and the left-over can be spent as wishes or put into saving accounts. Also, you can teach your teen the importance and benefits of saving account and interests.

3. Give a course about money-saving research.

In the case that after contribute to portion of the monthly bills, your teen still have some money left over, you will want to prepare some money-saving tips for him/her. For an instance, give a course on money-saving research about cable or cellphone expenses and figure out packages with similar or lower prices. In addition, encourage your teen to eat at home and get your teen known the price difference between eating at home and dining out in restaurants.

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