The rave of this generation is mostly centered around becoming rich overnight. Most young people out there have the illusion that adulthood is the platform for making millions. Most are unaware of the reality of what it really takes to make money, or the attitude towards money making. Therefore, it is important to teach teenagers some money lessons and not wait until they are adults before they start planning how to be financially independent.
Your job as a parent or guardian is to enlighten your teenager, so they don’t make the same mistakes you made- maybe because your parents left you to experience life on your own, and learn from your mistakes. It is paramount that a teenager is taught the practical ways and methods to make money and the need to live an economical lifestyle.
Teach them about budget and planning
Firstly, a teenager should be aware of the reality of expenses, bills, responsibilities and the cost of living. Most times they are only aware that things get done at home without necessarily having a good knowledge of how those things are done. They have access to groceries when they need it, they get their monthly or weekly allowances, they might even have the luxury of changing their wardrobe every year. They sometimes are not aware of the real cost of life. A good start of teaching your teenagers about money is by letting them do the work themselves.
Such as, buying the groceries themselves, so they know how much these products cost.
You can sit with them and create a budget plan for the month. Make them aware of the estimated total income for the month, the recurrent expenses to be made for that month, miscellaneous bills and any other important bills the money has to pay. The aim is for them to realize how much money you spend to meet the needs of the house, as this will make them realize that keeping a home isn’t a child’s play.
Allow them to work
Secondly, it is necessary to encourage your teenager to make legitimate money at a young age by working. There are various opportunities a teenager can take advantage of to make money for themselves. They include the following;
– Tutoring or giving lessons (check out the app called – Take Lessons)
– Selling Digital photos through websites like Shutterstock, Dreamstime or Bigstock.
– Doing Odd jobs at Craigslist
– Designing web logos
– Working at a fast-food
– Teaching English online
– Working as a Life guard
– Working at a Movie theater
– Grass and plant watering
– Renting their video games or books.
It is also important to emphasize that they should not depend on a job as their only means of earning but engage in other side jobs to create other streams of income.
Teach them to not spend all their earnings
Another money lesson you should teach a teenager is that money is a tool to create more money. The general mindset for teenagers is that money is solely used to get what they want, such as clothes, bags, shoes and the latest iPhone or games. It is important they understand the rule of making more money through savings and investment. It is important for them to know that they do not have to spend the entirety of their earning. They should have a saving habit. Teach them that if a farmer eats all of his crops or throws away the seeds, there will be nothing to plant in another season. Let them have the mindset of a farmer.
The advantage of saving includes the following;
– Financial independence.
– Unforeseen expenses
– Good life
It is not too early to teach your teenagers about investment. Such knowledge will serve as a good preparatory foundation for their future. The lifestyle of a wise investor, inevitably lead to wealth. As a teenager, the experience gathered through investing their money will enable them understand the market and give them the sense of increasing their wealth through investment.
Teach them to avoid debts
Another lesson to teach your teenager is that the world of debt is a world to avoid. The frequent use of a debit card has the tendency of setting one back in life. Debt is like when one puts water into a basket. It cannot retain the water so it has no use. If you work hard to earn money and at the same time you spend the money through debts, you might be digging your way into poverty.