Reading time: 3 mins
Suitable for: Families of secondary-aged children
Money and freedom are closely linked for teenagers, but your teen may not have had much experience with managing their own money before. Teaching them good money habits will be of huge benefit to them in later life, and the earlier your teen is introduced to money management, the better the chance they will adopt good habits.
It might be difficult to guide your teens towards sensible decisions at first, and they may make some mistakes along the way, but there are lots of things you can do to help set them on a good path.
Give them some financial responsibility
From a young age, children can be involved in spending and saving money, such as paying for things in the shops and receiving change back. They enjoy putting coins in piggy banks and getting money for their birthdays and other special events.
As your child gets older, it’s a good idea to give your child more control and responsibility over their own money. Letting them earn some pocket money might be a good way to start, or they may start a part-time job.
There may be times when they make mistakes or overspend. Avoid the temptation to jump in and fix the problem for them and instead be supportive and help them find their own solutions. Seeing the consequences of making financial mistakes when they are young and managing relatively small amounts of money will help them learn for the future when the amounts may be far greater.
Set a good example
Children learn from observing others, and your teen will start to learn how to manage money by watching you. For example, if they see you saving up to buy something, it is more likely that they will adopt these habits too.