How To Teach Your Teenager About Money

Whether it’s a new skateboard or smartphone, coming up with a savings plan will teach them how to save, the value of money and even how rewarding it is to work for what you want. You’ll also be teaching them delayed gratification, something that can only help them in later life. 

Do they need to get a part-time job, sell sports equipment they aren’t using or help out a little more around the house? Part of financial literacy is teaching kids that money is something that needs to be earned. It can’t just be expected or asked for. If there’s pocket money in place, what do they need to do to earn that allowance? Remember, a handout never helped anyone. 

When you’re young, everything you desire is something you need. You need new clothes, a new laptop and even that bar of chocolate. As you come to learn the value of money and what it takes to get these things, you soon learn to separate your wishes into needs and wants. Helping your child identify both from a younger age is a great way to lessen frustration when they don’t get what they want. They’ll also be practising that delayed gratification we spoke of earlier. This will lead to less impulsive purchases and fewer financial dips later on in life. 

If you are going to treat them to some new clothes or treats, give them a budget and take them shopping. Let them become aware of pricing and have them add up the value of the items that they want. What should they put back in order to fall within the budget? This helps them make sensible choices and not to spend above their means. 

Have conversations about money, budgeting and saving from a young age. This will help open up the narrative surrounding finances, which will result in healthier spending. It’ll also help your child speak up if they ever fall into debt one day, something many don’t mention until it’s almost too late.

If they want to blow their pocket money on something silly, let them. Sometimes, they only need to do this once before they realise that their money could have been better spent somewhere else. It’s better for them to learn this now than later in life when they have greater expenses and responsibilities. 

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