this is a guest post by Chris Campbell who works in Dave Ramsey’s financial coaching division. He also does 1 on 1 financial coaching. Feel free to contact him if you are interested in his services. He launched his blog this week. You can keep up with him on Facebook and Twitter.
Talking about money to parents is almost as hard as talking about sex with your kids.
You must realize that as parents you have the opportunity to show your kids how to handle money and be wise with what they make. Here are 5 ways to help your teens with money:
1. Show them your budget- This will show them realistically what you spend on household items monthly, as well as, what you spend on them. Let them see you make the budget, and even offer for them to sit in on your family’s budget meetings.
2. Tell them not to get credit- That’s right, you heard me. Don’t get credit! Why you may ask? Most freshmen in college get a free shirt and a credit card that they will keep for life and run up the balance at some point all in the name of a credit score. This is not a good plan. Show them that paying cash for items will be the best financial plan to stick with.
3. Do not give an allowance- when is the last time you rolled into work and your boss said “hey, thank you for just being you, here’s $50.” Nope not the way it happens. What does an allowance teach a child? Nothing. As adults when we work we get paid and that is the real world. This prepares them for life. So paying them for certain task is a great way for them to own their money and have responsibility.
4. Have them pay for things- Just as working for money is real world, so is paying for things. I can’t tell you how many people I talk to that are still funding their 23 year old’s social life. By giving your teen one bill to pay especially if it’s their cell phone it will give them a sense of pride that they can do something on their own. Otherwise you will be looking for my post a few years from now Failure to Launch- How to wean my adult child financially.
5. Show them the way- Kids do what you do, not what you say. Shocking right. Tell a 3 year old not to run into the road, they will do it. Say a curse word though around them, guess what you have a new potty mouth at your house. Kids need to see you walk out this financial life style you want them to have. Lead by example and when you make a mistake admit it to them, they are smarter than we think they are.
Raising a teen is difficult, but it is way easier than providing financially for an adult child that was never trained.
Take the time to talk with them about money. If you don’t know yourself, it is better to attend a class with them and learn. You will never regret the investment in yourself or your teen.
We are asking these 2 questions on our Parentzilla facebook page… WERE YOU TAUGHT AS A TEENAGER HOW TO MANAGE MONEY? HOW HAS YOUR EXPERIENCE OR LACK OF EXPERIENCE EFFECTED YOU AS AN ADULT?
Please go here to give your answer.