How to Talk to Your Teen about Money in a Way that Matters: The Ultimate Guide, Part 3

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This is the final part in our series.  So far, we’ve discussed the importance of making the financial conversation with your teen one that’s real and one that matters to them.

Equally as important is ensuring that it’s one that lasts.  There are a lot of different ways to teach your teen about money management.  Consider, for a moment, if what you are teaching your teen is relevant to them now and later on when they are no longer under your wing.

Ultimately, you want to teach your teen money skills that can be applied and understood now, but also be put to use later on.  The goal here is for your teen to learn crucial skills that will evolve into regular habits when they are adults.

Here is an example of a conversation about money management that, in the short run sounds good, but ultimately doesn’t teach a crucial lasting skill.

Your teen has just gotten a job, so you discuss with him how he’ll be able to save his whole paycheck, week after week, in order to buy a car or some other big item that he wants.  Learning to save all of his money for one thing is NOT a skill that will transfer to adulthood.  Money skills that aren’t related to adult life will not last.

Now let’s look at an example of a lasting conversation.

You have your teen begin to practice a system for saving, spending, investing, and donating.  This is a practice that lasts.  Teens know it, too.  They learn to see their money as a tool for making their dreams come true, for providing for the people in their lives, and for making a difference in the world.

Share with us some of the lasting conversations that you’ve had with your teen.  Do you think these conversations will have the effect that you’re hoping for?

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