“Teaching your kids about money is never just about money.” — Dave Ramsey
Teens and Money
Being a teenager can be hard.
Being the parent of a teenager can be its own kind of hard.
Throw money in the mix and no wonder the good, the bad, and the ugly show up.
As a parent of five (the oldest being 37 and the youngest being 23-year-old twins), I've learned that each child navigates money differently depending on personality, societal norms, birth order, and family dynamics. However, there are a few things that matter and that we can focus on as parents if we want to raise money-smart teens.
3 Tips for Raising Money Smart Teens
Raising money-smart teens starts with a mindset and practices learned from an early age. If your child experiences different views about money while growing up, this can have an impact. To learn more about how to use these differences positively, read my blog about Allowance Types.
Be Clear About Values
Our core values guide our actions. If your family values are made clear to your children from an early age, these values will continue to be a guiding force even if your teen challenges them. They are exploring their identity. The stronger the tether to what grounds them and you, the more you can assume that that tether will be tested. Example: Your teen hears growing up that "it isn't all about the money." Expect this phrase to show up in conversations, to be challenged, or to guide life choices.
Be Consistent
Life rolls along quickly, complicated by changes in family dynamics, economic forces, and needs. Regardless, kids like routine, clarity, and boundaries -- even if they push against them and even more so in times of chaos. If possible, aim to be consistent with what your teen can expect from you and you from them. If those expectations change, communicate why in an age-appropriate way, and give everyone time to adjust. Example: If your child wants more autonomy over their spending, review core values and changing expectations with them. Listen to their concerns and questions, and explore what autonomy means to them. Find a place of agreement and set a period for testing the plan. This practice teaches your child that it can take time to learn new things, build skills, and establish new habits.
Be Positive
Interacting with your teen around money can quickly devolve into preaching, telling, or scolding. If you want a more positive impact, start with empathy, active listening, and creating a space where they feel safe sharing their fears and concerns. Chances are, their challenging behavior comes from feeling judged or worried they are letting you down. Instead, your goal is to foster a learning environment where mistakes can be made.
Example: Your child making spending decisions you don't agree with. Rather than scold or judge them on their choices, stay mum. Let the situation teach them what they need to know. If they ask for more money, review the terms of the agreement and assure them that you're available for emotional support or advice while they navigate things until the next agreed-upon sum is distributed.
Learn more about Raising Money Smart Kids.
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