Financial experts say that American teenagers are lacking knowledge about finance and have much to learn in that aspect. A survey found that despite the fact that 88% of teenagers aim to own a home in the future, many are clueless about information about home ownership and managing finances. The problem of this financial illiteracy among teenagers is the insufficient education provided in this aspect, especially in schools. Besides the government needing better national strategies to address this, here are some ways to go about teaching teens about finance.
Education Is The Way To Go
Financial lessons truly begin at home and parents should be the front line of financial literacy. It isn’t as complicated as it sounds though! The key is repetition. Constantly including children in some household financial conversations can contribute to early financial literacy, which can go a long way. For example, incorporate teaching them how to budget if you are having a talk about family budgets. By making it a rhythm, your teen will eventually be influenced to follow in your footsteps. Watching parents make good decisions isn’t sufficient. Teens want responsibility and to be included, so introduce purposeful discussions to launch the adulthood experience, providing them with the knowledge to protect their finances as they grow older.
Starting From Young
When trying to form habits, the most effective way is to start from a young. Likewise, financial decisions and habits should be taught to teens when they are young. Be it encouraging them to save, or giving them useful tips, it will eventually lead to better financial decisions. Furthermore, the satisfaction from buying something with the money they saved themselves is what motivates them.
It is also important to explain to them financial terms such as debt, or how credit cards work. All these seem like a lot, but they will teach them how to be responsible with their money and not fall into unnecessary debt.
Getting A Job
Landing a job is always a teenager’s first milestone. It is the path toward true financial independence and plays a crucial role to prepare them for the real world. Whether or not it is informal or informal employment, a job provides them with a new level of financial understanding, which they experience firsthand. Guidance from parents is also important, especially in teaching them how to use their first pay slips and the different banks, etc.
Suitable Resources
It is vital to find resource-friendly materials that are age appropriate to help teens grasp financial concepts. There are now many online learning programs and materials available online. Even watching interactive videos, and attending summits or talks can go a long way in establishing good financial basics so as to feel less overwhelmed in the future.
Finance In Your Hands
Your teens’ financial literacy is not something to be taken lightly. Sometimes, you need to take matters into your own hands if not enough is being done for your teen in school. Therefore, ensuring they are aware of financial basics will teach them to form proper habits and decisions, instead of making costly mistakes.
