The teen years are when money management starts to get complicated, as teens can start earning their own money and tend to start spending it more freely as well. If they want to manage their funds, good solid skills are needed. So what do teens need to know and how can they learn those skills?
At this age, the skills they need to manage their money are pretty much the same as adults use. Think about all the different things you've had to learn when it comes to your finances, and now your teen needs to start learning them as well. Though today's teenagers may have more options when it comes to their finances, basic money skills are still the same. Here's the way to get started.
Money skills for teens simply keep building where kid's money concepts left off. Hopefully, your teen has a good foundation for understanding money concepts which will make further learning much easier. If not, a teenager should be able to pick up the extra skills quickly. - Allowances aren't always common for teenagers, but if your teen is new to managing his or her own money, this is the place to start for basic money skills.
- A savings account
- Budgeting, investing and saving
- Wise spending tips
- Learning more financial and money terminology
After the basics are learned, teenagers can move quickly to the more advanced ideas. Some further topics can be complicated, but that doesn’t mean the need to be overwhelming. Each concept and topic builds on the foundation that’s already been set. Just take it one step at a time.
During the teenage years, most teens have been able to fall back on their parents as a safety net while they master their money skills and make mistakes with their spending. These mistakes can be an important part of the learning process for a teen, and parents should allow them to take place. It’s far better for these lessons to happen now on a smaller scale than when they are on their own. Further topics for learning could include: - Taxes
- Investing
- Credit and credit cards
- Debt, and specifically how to manage it
The lessons learned about money during the teen years will continue through high school, and on through life. Once a teenager graduates from high school, it will be important that a good financial foundation has been laid so that they can move successfully into adulthood. Basic teen money skills can make all the difference.
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