How to Develop a Habit of Saving Money among Teenagers?
Managing finances is a common issue for most of us but we surely do not want our children to face it which is why it is highly suggested that you teach children about money. Being a parent, it is your utmost responsibility to teach the kids how to develop a habit of saving money and utilizing the income efficiently as these things will be helpful for them in the long run. Parents usually consider teaching teenagers’ financial responsibility difficult but following are some easy ways that will help you in giving these valuable lessons to your teens.
Provide Fixed Amount of Money
The first step to teaching teenagers financial responsibility is providing them fixed amount of money every week or month. Avoid giving them too much money, it is better to provide amount that is enough for fulfilling only the basic needs. Doing so will develop the habit of saving among kids as they will cut their expenses from the given amount in order to buy anything that is not a necessity.
Create a Culture of Giving Rewards
The main purpose of teaching children about money is to make them realize how difficult it is to earn money so it should be spent carefully. Parents should let children earn money for fulfilling their routine needs. This can be done by developing a culture of giving rewards on small tasks. You may ask the teenagers to earn money by performing routine tasks like making their bed, washing the dishes, keeping the room neat etc. You should give money only when teenagers complete these tasks daily. You can add interest in it by offering bonuses on good work and imposing fines on failure to fulfill the responsibility. This will not only decrease your burden but will also increase a sense of responsibility among teens.
Develop Decision Making Skills among Teens
Teens should learn how to take financial decisions wisely and this is possible only if you give them the confidence to take their decisions themselves right from a very younger age. Parents should not interfere in their decisions. Let the kid decide which dress is looking better on him, which color suits him more and which haircut he should get. This practice will help teens in taking wise financial decisions in their practical life. Parents must also make teens realize that they are fully responsible for all their decisions, this will make them cautious and they will start taking all important decisions more carefully.
Motivate them to Earn Money on Their Own
Believe it or not, the pocket money your kids receive every month will not be enough for them in the coming years as their expenses will naturally increase with the passage of time. If your kid comes to you for extra money, simply ask them to earn it. Though he may not like this idea in the start but he will eventually get used to it. Encourage him to do a part time job or other little tasks in the neighborhood like car washing, maintaining neighbor’s garden, removing snow from the front door etc. When they will work hard to earn money, they will automatically start spending it more carefully.
If you lose hope at any stage or your kids react strangely to this whole idea, just remember that Rome was not built in a day. Kids will take time in adjusting to this new routine; do not expect them to learn financial responsibility within a day. These things naturally take some time so show patience. It is better for the teenagers to learn the value of money earlier in their lives as it will help them to live a happy and stress free life. So, give some tough time to your teens today instead of waiting for the outer world to teach these bitter realities of life to your kids.
Parents must teach their children how to spend money carefully as it helps them to manage their expenses efficiently and more importantly, it keeps them away from stress.