Money tips for teenagers

As parents, we want to make sure our kids are learning and putting into action the best habits to lead a successful and independent financial life- who knows, you might even have a little scientist gem or groundbreaking artist leaving dirty dishes in the sink every night.

To motivate them a bit more, these are just a few great money tips for school goers any parent can give to their children:

Saving is king

Habits are just neural pathways organised in a certain way. The best thing about being young (besides perfect skin, great hair and strength) is the neuroplasticity in our brain and bodies: they can learn new things and form habits (as well as break one) in a very short time and half the effort their parents would.  Even if they are only working one shift a week at the local cafe for $15 an hour, persuade them to save whatever they can to start building that great habit. Plus, saving is only easier when kids are still living with their parents and have little to no expenses!

Their money, their bank

If your teenage kid is old enough to work, he should be the one choosing a bank as well. Encourage them to compare the different options, set up a savings and an everyday account and make sure they are getting the best benefits for their situation.

Buy Now, Pay…Now

The one rule every single kind and teenager needs to learn at all costs is: if you can’t afford it, forget it. Even though minors are not allowed to use these online payment systems, make sure you don’t become their loan bank until then. It’s the best way to help them stay away from unnecessary debt!

A ridiculous price tag is not cool

For some adolescents, fitting in is incredibly hard. Sometimes, they think that by wearing expensive clothes or spending money in things they don’t want and still purchase out of peer pressure will help them. It’s hard for them to believe us, but remind them that high school is just a small part of life, and the money they are spending on those things might look like a waste in just a couple of years.

Investing 101

Although investment is not an option before the age of 18 it’s always good to teach our children the basics of investing. There are heaps of podcasts and fun Ted Talks to get them started and make sure they are ahead of most people in their twenties!

Live a little, save a little

If your teenage kid is already talking about law school or buying a house, remind them responsibilities will always be there. Enjoying life and spending some of their money in holidays or just a fun activity is also the key to mental health and life/work balance. In the end, their financial goals should be the path their happiness!