Rule of Mum: 10 Tips for Teens and Money

  • SurvivalTeach your teen the value of saving early. The money they save today can double or triple over time due to interest (if they don’t touch it!).
  • Promote goal-setting. Talk with your teen about what their goals are for their money and how they plan to get there.
  • Establish a set budget. Help them establish a budget that allows them to pay for things they want and provides a buffer for unexpected expenses.
  • Encourage teens to earn their own money.
  • Establish a bank account.  Bank accounts are important for building a financial history.
  • Talk about the debt trap.  If a person takes out credit for an immediate want, then they may be paying for it out of future earnings for a long time.
  •  Teach your teenager the value of shopping around and comparing prices and how to make their money go further by ditching the wants, buying on Trade Me and waiting for the sales, etc.
  • Help them to understand how they are pressured to spend, the choices they can make and the effect of delayed gratification on their finances.
  • Talk about how paying for the brand name eats money fast.
  • Explain how bank accounts, Eftpos, personal loans, overdrafts, hire purchase agreements and credit cards work.
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One Comment on "Rule of Mum: 10 Tips for Teens and Money"

  1. Elisabeth Donati at Creative Wealth says:

    These are all good idea except we need to add a very important one. While we all agree that kids and teens should learn to save (and why) early, it’s important not to let them think that saving money is going to make them much money…it doesn’t anymore.

    In my financial education camps, Camp Millionaire, The Money Game and Moving Out for Teens, we teach them to invest in assets like real estate, the stock market and businesses in order to create cash flow for themselves that will allow them to be financially free over time, sometimes sooner than later.

    The time when interest used to really make a difference is over for now and we need to adjust what we teach kids about it accordingly.

    Elisabeth Donati…The Financial Literacy Lady

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