Many parents never think to teach their teens the basics about money before they leave the nest. Only teaching them 
to save their money won’t necessarily keep them safe from rip-offs or fine print. Sink or swim is not the best way to learn about contracts or bills, so parents should teach their kids about these sorts of things before they move out.
Here are a few examples of things your teens need to learn now as opposed to later.
Bills
It may seem like a simple thing, but learning how to reading and understand bills is an important skill that should be learned early. Another important thing is learning how to manage your money to pay your bills. Teach your teens how to set aside money each month specifically used to pay bills. A lot of people fall into the routine of paying bills with whatever they have left each month. This is the opposite of what you should be doing, and learning this ahead of time will teach your kids to keep their head above water.
Contracts
Signing a contract for insurance, accounts, or other things can be very dangerous. Let your teens sit down with you, and teach them how to read the fine print, and what sort of phrases to watch out for. People that haven’t learned this young may sign a contract without reading it, and put themselves in a lot of trouble. If you teach them ahead of time, it may save them, and even you, a lot of trouble in the long run.
Bank Practices
Teaching your kids about using the bank when they’re young will help them to develop healthy bank habits. Help them to understand loans, savings accounts, and different cards. Show them how to use a debit card, or a credit card. But also teach them about credit card debt. Many people think that credit cards are like an unlimited hole of money, which causes them to bury themselves in debt. On many occasions, this starts young. If you teach your kids to use credit wisely instead of frivolously spending money, they may continue to use these healthy credit habits long into their adult life.
Don’t leave your kids to fend for themselves once they enter the financial realm. Chances are, if they’re given the right tools, they’ll make the right choices for many years to come.
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2 users resposed " Things Your Teens Should Know About Finances "
August 31 2009
[...] at Fined Tuned Finances presents Things Your Teens Should Know About Finances in which he talks about just three very basic and very important financial areas that our children [...]
August 31 2009
I agree it’s very important for kids to learn about finances before they are out on their own. When I moved out on my own at nineteen, I had no idea how to balance a checkbook, I’d never read a bill, and I had no idea what credit card interest meant.
I learned all these things the hard way.
Interesting post!
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