Teaching a teenager to value money and use it wisely is an important task for parents. In this article, we'll talk about how to help your child understand the importance of work. And if he loves computers, at Progkids we'll teach him how to make good use of his screen time!
Why is it important to value money
Valuing your savings is a useful skill that ensures financial security throughout life. Here are a few reasons why you should learn to do this:
No.1. Achieving goals
Savings allow you to achieve long-term goals, whether it's buying the thing you want, paying for tuition or traveling. Saving requires patience and planning, which develops important life skills.
#2. Financial security
Unexpected expenses can occur at any time. Savings allow you to cope with them without stress. This sense of stability is important for psychological comfort.
#3. Freedom of choice
Having savings gives you more opportunities. You don't depend on instant income and can make informed decisions beyond just your immediate financial situation.
#4. Investments and capital growth
Savings can be invested, which allows you to increase your capital and ensure a more comfortable life in the future. This is a long-term strategy that brings stable income.
#5. Self-discipline
The savings process develops patience and ability to plan expenses. These skills are useful not only in finance, but also in other areas of life.
#6. Confidence in the future
Knowing that you have a financial cushion gives you confidence in the future and allows you to face difficult times more calmly.
How to teach a teenager to value money
For your child to understand the value of money and learn to be frugal, use the following tips:
#1 Working days
Engage your teen in some kind of paid work (for example, helping the neighbors in the garden, handing out flyers) or help them find a small source of income online.
#2 Three jars
Take three cans (or boxes) and write “You can spend”, “Savings”, and “Charity” on them. Teach your child how to distribute money to banks, explaining the purpose of each.
#3 Weekly budget
Help your child make a simple budget by planning expenses for a week or a month. This will teach him how to control his finances.
#4 Financial games
Play board games or apps that simulate financial situations.
#5 I see the goal
Help your child identify a specific goal for saving (a new gadget or a trip). This will increase his motivation to save.
#6 Visualization
Draw a graph or use special applications that will visually show progress in saving money. A visual representation of the goal and the result achieved can be very motivating for a teenager.
#7 Necessary vs. Enjoyable
Help your child distinguish between necessary purchases (for example, textbooks, groceries, warm clothes) from those they want (a new gadget, a fifth backpack).
#8 Delaying purchases
Teach your child to put off shopping for a while to see if he really needs this thing.
#9 Talks about money
Discuss money issues with children: wages, savings, investments. Use accessible language that is appropriate for the teenager's age.
#10 “Money” stories
Offer your teen books and movies that will help them understand the basics of financial literacy.
Do you want to take care of your child's future right now? Sign up for free trial lesson to Progkids and take the first step towards its successful future.
