As schools remain close and you do your part to flatten the curve, the new normal has disrupted your usual routines and brought chaos into your home. Nowadays, you’re juggling responsibilities and taking on new home-school duties.
If you’re wondering what to do with your teens now that you’re their at-home teacher, talk about money. They’re old enough now to know more than the basics.
Not sure how to begin? Check in with these tips before you get started. They offer up lessons about money with more real-life applications than any calculus or algebra homework.
Sooner or later, your teen will get an after-school job — that is, if they don’t have one already. Once they start earning their own money, they need to understand how to budget.
Now is the perfect time for them to learn how to plan their spending. They can troubleshoot how to balance a budget without worrying about real adult bills like rent or insurance.
Set aside some time to talk about the features of a well-balanced budget once they have these responsibilities. It should direct most of their income towards regular bills, so they don’t fall behind on essentials. They can splurge on funs with the leftover, so long as they also make space for savings.
Introduce Them to Financial Tools
Your teens are probably already thinking about student loans or lines of credit to help once they’re at college. Share the basics behind borrowing, letting them know how interest works on student loans. You should also expand your talk to include other kinds of loans, like installment loans, mortgages, and auto loans.
If you’ve ever relied on installment loans before, use your own finances as an example. Not only will you be able to share your experience using these kinds of short term loans, but you’ll also be able to show that it’s okay to make mistakes.
Sometimes, they won’t save enough, or they’ll hit a few speedbumps. Knowing this is may happen and that there are MoneyKey Installment Loans to help with emergency expenses may take some of the pressure off their shoulders.
Stress the Importance of Savings
Their savings helps them prepare for life’s biggest expenses — whether it’s a school trip, new shoes, or a new phone. These can cost a lot upfront, but by squirreling away a little bit of each paycheck, they can afford these splurges without feeling the crunch.
Ask them what their biggest goals are. Maybe it’s buying their own car, or perhaps it’s going to college. Whatever they say, focus on this goal to see what they can do to set aside cash.
Savings isn’t just about being able to afford the fun things in life. Talk about how every adult should have an emergency fund to help cover unexpected, urgent repairs or medical bills.
Find Some Time to Talk Today
Talking about money isn’t always easy, but whoever said parenting would be simple? You found that out from day one, so lean into it. You might be surprised once you get talking. It’s a great way to spend valuable time with your teens.