- Have your teen set a financial freedom goal that sounds something like, “I will have $X by age X that will allow me to be completely financially free so I can have _________, be ______________, do _____________, and help _____________ without financial worries or constraints.”
- Teach your teen the habit of tracking his/her money. Use Mint.com or an Excel spreadsheet or a handwritten journal. Set a schedule for updating all assets and liabilities and follow it.
- Support your teen to experience and explore opportunities to learn about money online, in books, and in programs. Check out WealthQuest for Teens’ online video/workbook program that is narrated by and for teens.
- Teach your teen to manage his or her money so that spending, saving, investing, donating, and earning are coordinated to happen at the same time.
- Teach your teen positive, healthy ideas about money that are not rooted in fear or myth. For example, “money allows people to express who they are; it doesn’t make them a particular way or change them.”
- Talk to your teen about your finances. Make money an interesting conversation topic.
- Make sure your teen is accountable for his or her money. Your teen should have financial responsibilities and experience natural consequences for poor money management.
- Make sure your teen has at least one active bank account that has a meaningful role in his or her life.
- Have your teen routinely give 10% of all the money he or she receives to a cause he or she cares about. Check out www.dosomething.org for opportunities and ideas.
- Encourage your teen to earn money in creative and productive ways.
Easy Action: Teach your teen a great money management system that is age-appropriate.
Resource at Your Fingertips: WealthQuest for Teens’ Silo System teaches a system that works great for teens now AND for the rest of their lives.
Remember to Pledge to teach your teen to be an excellent money manager! Let the world know that parents are doing their part to build a financially literate society!
© Your Teen’s Money Skills, Inc., 2012. All rights reserved worldwide.