Posts Tagged ‘teach your teens about budgeting’

Teach Your Teens About Budgeting

When it comes to budgeting money, you can achieve some great results when the entire family, including your spouse and children, works together. Therefore, it is very important for you to teach your teens about budgeting. If you are cheap cialis online working hard to keep your finances on track, but your children are in the habit of overspending, your budget plan may never work for you. Though schools provide education, they do not teach the young children how money practically works in the real world, such as how money comes in your pocket, where it goes to, and how important it is to live a comfortable life. Here is a brief rundown on some tips and suggestions that will help you teach your teens something that they are taught about in schools.

Explain To Them How Monetary System Works

You can start to teach your teens about budgeting by explaining to them how the banks operate, how credit cards really work, how checks are used, how ATMs work, and other such things. While you are explaining all this, you should pay special emphasis on the service charges and interest payments associated with the same. This way, you will be able to make some basic things clear to them. For example, they will know that it is easy to swap a credit card and make a purchase, but every time they do so, they actually create debt that needs to be repaid. They will get to know that if there is no money in your bank account, the ATM card cannot help them withdraw cash from ATM machines. ATM machines are for those who have money in their bank accounts.

Give Them Some Financial Responsibility

You can teach your teens about budgeting in a better way by assigning some specific tasks that require them to take responsibility. For example, you can assign them the task to make payments for some of the monthly bills. You obviously do not want them to earn money and pay for it; the idea is to give them money and tell them to make the payments in a timely manner. This way, the teens will get a better sense of financial responsibility. But remember, you do not have to force these tasks on them. Assign such tasks only if they are willing to do that. You should give them only those types of responsibilities that you have both agreed on.

Explain To Them How To Make A Budget

Once your teens have got some understanding on how money works and they also have learn about financial responsibilities, this is the right time to teach your teens about budgeting, such as its importance and how they can create a budget plan. You can do it in a better way if you give some weekly or monthly allowances to them. In that case, you can make two columns on a notebook, one for their expenses and other for their income. Explain to them that how they can be in trouble if they are spending more than the amount of money they get as their allowances. You can also describe how they can transfer a part of the allowance to a saving account and see the same growing with every passing month. In order to encourage the habit of savings in them, you can even consider giving interest on the amount of money they save every month. You can explain to them how they can use their savings to make big purchases, such as for Christmas. This way, the teens will be able to get a sense of financial independence also, as they do not have to come to you again and again every time they have to buy something.

Overall, if you are willing to spend some quality time with your children, you can easily teach your teens about budgeting. The efforts and time you invest into it can be highly rewarding, as it will help you make your actual household budget plan work more efficiently.

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