Whether you are a parent and grandparent or a carer you play an important role in shaping the financial behaviour and attitude of the young people in your life towards money. Enable’s IFAs in Bishops Stortford know that many teenagers rely on their mum or dad to set the right example when it comes to managing finances.
Talking to teenagers about money is not necessarily that easy but there are some areas where you can help your teenagers start to learn how to manage money. Firstly it is a good idea to try and give teenagers some kind of financial responsibility. Young people need to recognise the value of money and understand that it is not an unlimited resource.
By giving them some freedoms to manage a budget they will begin to learn that they can only spend what they can afford even if it is just using their pocket money wisely and saving for something they really want.
For many people, pocket money is the first taste of financial responsibility. Providing your teenager with a regular, set amount of money and the responsibility of paying for something they want gives them their first opportunity to practice how to stay within a budget.
It is also important to set the right example so your teenagers so they can learn from family and carers. If you’re the type of person who saves up to buy something, then it’s more likely that your children will do the same. One way of setting the right example is by including your teenagers in some of your financial decisions, particularly as they reach their late teens. This could just be helping with a weekly shop to a budget.
It’s also a good idea to be open with your children about any financial mistakes you made when you were younger. Enable’s IFAs can help you take the management of your finances to the next level and make sure you make the best decisions with your hard earned cash.