Financial Lessons You Should Be Teaching Your Teen

 Financial Lessons You Should Be Teaching Your Teen

Disclosure:  This is not a sponsored post.  There are no affiliate links included.  All thoughts are my own and no other’s.  This post is now in the guidelines of the FTC.

The world is a scary enough place for young adults as it is without the added stress of having to worry about money for the first time. That’s why as a parent, it’s important to prepare your children with money handling techniques so that when they do eventually fly the nest, they’re less likely to land themselves in financial trouble. Even at a younger age it’s important to begin teaching the value of money to children, but some lessons are simply too complicated to burden them with. So, here are some financial lessons that you should be teaching your teen so that they can learn how to handle their money in the best way possible.

Teach them about credit reports

Credit reports can confuse even grown adults, but your credit report is more important than you may think. Even if you’ve never been in debt, lenders still may refuse you when applying for money. You should think of a credit report as a credit history. So, even those that haven’t necessarily done anything wrong should consider taking out something small like a contract mobile phone to allow lenders to see that they are capable of making repayments on time. Teaching your teen the importance of keeping an eye on their credit score will help them in the future massively.

Explain how expensive owning a home is

We know how hard it is to own a home, but when you’re a teen it’s understandable that you don’t really have much of an idea on how it all works. Explain to your teen the process of buying a home and indeed, how expensive it can be if you’re not careful with money. Owning a home is one of the most expensive things a person will buy in their lifetime. Luckily in this day and age, we’re blessed with companies like Altrua that can help first time buyers get their foot on the property ladder.

Encourage them to save a percentage of their salary

A great tip to teach your teenager is how to save money, and the earlier you put this into place, the more chance they have of continuing to do so. Encourage your teenager to save a percentage of their salary, even if they only have a weekend job so that they have money put away for a rainy day. At this age, a rainy day might be a trip to the cinema but later on in life, they’ll appreciate the advice.

Charge them rent

Finally, it sounds harsh but a great financial lesson for teens is charging them rent once they’re out of full time education. It will teach them that sooner rather than later, they’re going to have to fend for themselves and that their income won’t be expendable. Charging rent helps teach the value of money, and if you don’t need the extra income yourself, why not save it and give it back as a housewarming gift when they do fly the nest?

Disclosure:  This is not a sponsored post.  There are no affiliate links included.  All thoughts are my own and no other’s.  This post is now in the guidelines of the FTC.

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