When your kids grow, as a parent your teaching skills also need to evolve. Mode of teaching and approach needs improvement and progress in order to cope with the changing teenager’s attitude. Adolescence is a difficult time not just for the child but also the parent. To teach older kids how to save, you need to kick it up a notch. Following are a few ideas on how to teach your teen to save.
Open a savings account: It is easier to teach a grown up child about interest and savings. You can look for savings accounts that earn interest. Help your child open an account and explain the importance of interest and other basic banking principles.
Teach priority: Make your teen create a wish list and number them according to preference and importance. Explain the difference between a long term and short term goal, and how to prioritise. Have them allocate an amount of their allowance to each goal. These are the beginnings of a financial plan and this type of thinking will serve your child well in the long run.
Teach about mistakes: Sometimes the best lesson comes from a mistake, especially at an early age when the financial loss won’t be so great. Let your teen go ahead and spend the money, and learn from the mistake when they realise that they do not have enough money left to buy something that they really wanted. Do not swoop in and fund them further after you have already given them the agreed amount.
Games that teach financial concepts: A number of board games are great at teaching financial concepts to children. Monopoly and The Game of Life, for example, can teach money management skills as well as the importance of planning ahead. You can look for online games to teach financial planning.
Financial conversation: Many parents don’t want to disclose salary details to their kids, but it is not such a bad idea after all. It gives them a real world scenario to understand their limits and comprehend the future plans that you may have or want to have for them. Discussing retirement plans or future wedding plans builds their awareness from an early age.
Shopping and looking for good deals: Shopping with teens can be a learning experience for them. Look for bargaining options with them to give them a better idea about saving money on a day to day basis. It also teaches them to compare prices and buy appropriately.
