The relationship that our teens have with money is going to shape their futures and mindsets, and as a loving parent, we want our teens to learn how to reach financial abundance and financial freedoms using their gifts, talents, and an understanding of how money can work for them.
Through teachable moments and a healthy support systems, our teens can learn to live and thrive independently.
First, we have to take into account that society will encourage your teens to live beyond their means.
Your lessons as a parent can provide the faith and ability to develop a healthy money personality.
I encourage transparency with money in terms of what it costs to live. Without the transparency, teens are unable to formulate an understanding of their goals of living independently. Open conversations about real-world experiences provide benefits for years to come.
Conversation points depend upon age, of course. Here is a helpful list of discussion topics:
The cost of a new car versus a used car
How compound interest works
Bank and credit card fees
Showing them your paycheck- the before and after taxes amount of money
Mortgage costs and rent costs
The cost of utilities: Electricity, gas, water, trash, phones, internet, cable
Grocery costs and restaurant costs
Transportation costs: gas, insurance, oil changes, tires, and, unexpected repairs
I encourage scheduling a budget night with your teens and an openness about reaching financial goals.