Your teens will take many of their beliefs about money from their parents. So when you’re preparing to teach your children about debt and finances, the behavior of you and your spouse may have already influenced your teenagers. They watch your reactions and decisions carefully. If you argue with your partner about money, dodge the calls of bill collectors, or get visibly stressed when you pay your bills, your teens may see and copy that behavior.
How to Teach Teens Healthy Financial Habits
When your kids grow into their teenage years, talks about money will naturally become more complicated. Your kids want to be mature adults but are stuck by their inability to control their own financial fate. But they are old enough to understand the ins and outs of adult financial behavior. Start the money talks by sharing with your children how your car lease works, the details of your bill payment routine, etc. Your teens will likely appreciate what you do to keep the household running.
Teaching Your Teens to Use Credit Wisely
Let’s face it. Teens want credit card and the ability to purchase things on their own. However, it is important to teach your teen what credit means and how the process works. From interest rates to making payments on time, teach your teen what it means to be responsible with their credit.
There may be some ups and downs throughout the process and some hiccups. That is where the teaching opportunity comes in. Help your teen understand the consequences that come from maxing out a credit card or missing a payment. It will help them as they go out on their own to college or something else in life.
The goal is to make sure that your teen understands the importance their credit score has in everyday life. As they understand this, the likelihood of making payments on time, avoiding debt and other consequences that come with credit cards and loans, will be greater. Use your experience to help your teenager understand the importance of living within their means.
