During the time your teen child starts experiencing adulthood life, you need to closely monitor them and ensure that they are capable and ready to successfully manage their finances. This becomes a very important aspect of their lives if they hope to hay any promising future after they move out and start their own lives away from your home.
It’s no doubt that your teen children will never really have to worry much about financial situations and expenses if they continue to live under your roof. But still, you can at least try and make them understand that they need to be able to stand on their own financially and manage their www.northcash.com funds without any assistance from you. Here are some money management tips and tricks that you can teach your teenage child to enable them to have a decent and comfortable life, even after they move out to start a life of their own.
1. Teach them to save
You can try and teach your teenage children to develop the habit of saving at least 50% of their total earnings or gifts in a savings account. And the remaining 50% can be used for spending and other expenditures. You can do this by encouraging them to realize their saving goals and work toward achieving them. At least make them have some sort of incentive for wanting to save their money.
2. Creating a budget
You should also start teaching your teenage children how to create and stick to a budget. This is also another great method that they can use to save the money they earn from their work or receive as gifts. You can also offer to help them create a good budget that is detailed and easy for them to follow. Help them set a goal and show them how they can use their budgets to achieve the goals that they have set.
3. Teach them checking account responsibly
As a parent, you might have to co-sign for a minor whenever you are helping them open their own checking accounts. A responsible teenager might be ready to have and manage a checking account. As a parent, you can also try and explain to your child about the benefits of having his/her own free checking account plus free ATM use. Go over the basics with your teenage child about things like making deposits, writing checks, checking the available balance and even monitoring their account activity.
4. Teach them how to use credit cards responsibly
As a parent, you should also make it your responsibility to teach your teenage child how he/she can use credit cards responsibly and not abuse them. Highlight to them the benefits that come with using the credit cards responsibly and the troubles that they can get themselves into if they abuse the credit cards. Teach them about stuff like their credit history and how the credit cards can affect them and the impacts that can have on their lives.
5. Teach them to protect their financial information
With the ever-growing risk of financial fraud and all of the other types of risks associated with money and finances, you need to ensure that your teenage child knows about these dangers. Start teaching your child how he/she can protect him/herself from these kinds of issues. You can tell them, for example, to refrain from logging into their financial accounts using public computers or even public Wi-Fi.