If your teen is anything like most teens, you’re probably losing a lot of money to V-Bucks and new, trendy clothes, these days. Also, if they are like most of their peers, they know very little about the important financial concepts that are extremely relevant to them right now. Since it wasn’t too long ago that I was in their shoes, I’m hoping to help bridge the gap.
From a very young age we are taught about the importance of money. We are told what money can do and how your current standard of living can be dramatically changed if we somehow figure out how to earn more and if you have strong financial attitude. But rarely are we ever explained the importance of managing the money that we have, saving that money, or even the need of thinking from the perspective of investing money to earn more money. Coming from a small country, Nepal, and aiming to make a difference in the lives of people around me, I have realized that I have to be financially strong first.
As easy as it sounds, financial strength comes with great hardship. Whether at a job, in entrepreneurial pursuits, or with investing in financial instruments, one requires financial knowledge to work on even the basic facets of these. Thus, it is important to make sure that children understand basic financial concepts starting at a very early age. When children are instilled with the basics of financial management from an early age, they are more likely to look at finance positively and not as something that is “difficult”. Today, all we need is a positive attitude towards finance, and Wealthy Habits is on a mission to create that “Financial Attitude” among children.
So, are you ready to set that “Financial Attitude” in your child?
I can remember being in elementary school worried about opening a bank account, in middle school thinking about my first job, and in high school concerned about my credit score. That, alone, should tell you that my views on financial literacy have always been a bit… unusual, (more…)
During a class one day, I asked the students who earned money and how they spent it. One of the students said, “I earn money, but my mom takes it from me.” At first, I felt so sorry for this young middle schooler but then I realized that it might be that mom was taking it to put it in a savings account. The lesson here is you aren’t’ teaching your student anything by forcing them to save in comparison to teaching your kids to save in the right way.
Don’t force your kids to save a certain percentage of their money. So many parents do and unfortunately, when the student gets access to the account they spend it faster than you can blink an eye. Encourage them to build assets instead of saving for something that will have no future value (the video game or a pair of shoes). Open a custodial brokerage account with your student. Consider matching what they save as long as they leave it alone to grow. They can easily put $100 in an account that has no minimum required and no annual fees to purchase a share or two of a company they know. The kids I see that have investments are proud that they own a share of such a well-known company and they want to save more. This makes it their choice, not yours and starts them on the path of building better habits.