Helping Your Teenagers Develop Strong Financial Habits

Our children are the future. That's why teaching them how to manage their finances is essential. The current generation of teenagers is frowned upon by the media for their record-breaking consumption and eye-watering spending habits. 

But, is it that they spend too much, or have simply yet to understand the teachings of financial literacy?

Guiding our teens to understand the importance of managing money is key to setting them up for future financial security. Remember, Rome wasn't built in a day. 

They will likely indulge in excessive spending occasionally, but there will come a stage where they reflect on their habits and realise their money is better spent elsewhere. In this blog, we will share how to teach your teens better financial habits.

Lead by example

First and foremost, if you wish to see your children effectively manage their current finances responsibly, you need to lead by example. Perhaps you too are someone who occasionally splurges on shopping sprees and unnecessary purchases. 

Reflect on your spending before diverging your attention to your children. They are a product of their upbringing, if they have been exposed to endless spending, they may be under the impression that they can do the same. 

Cut back on your shopping, and only buy with disposable income for necessary things, such as saving for family holidays, or investing in college funds for your kids.

Teach them the value of items

The ‘overconsumption habits of teens today need to be put to rest. We can't place the entirety of the blame on the youngsters, with constant marking and advertising for products they simply don't need to be displayed on their phones. 

Cheaply made products with that. We need to teach our children the true value of things, items which are well made and can't be bought and uncared for. For example, if your teen is looking to start their driving lessons, help them in any way possible to save for a car. 

Perhaps you can buy them a car, but it will be a much more valuable lesson in showing them how to save for one themselves. They will learn to understand the value of things and save or invest in quality rather than quality. 

Their fast fashion hauls will be put to a halt, and they will invest in better-quality hijabs instead.

Set monetary saving goals with them

Following on from encouraging them to save for a car, be the extra support they need and set a list of savings goals with them. If they have holidays they wish to take with their friends, or hopes of attending a college far from home, help them to create calculated savings goals. 

Assess how much this purchase would be, and estimate how much they can save within the allotted time frame. It doesn't matter whether they have a job or you simply pay them for house chores, teach them to take charge of their finances, but be sure to guide them on the right path.

Introduce them to investing

Investing is a solid foundation for a stable financial future. Teaching your children how to invest in stocks, shares and commodities at a young age can be the key to unlocking financial abundance. 

There are hundreds of videos and materials that are designed to teach teens and beginners the fundamentals of investing. Share with them different creators on TikTok who discuss the matter, with this app turning into some of the most used search engines of the last year for Gen-Zs.