Teach Teens About Money:
by Mary Hunt
They want independence and freedom. You want them to take responsibility for their actions. They want decision-making power. You want them to make the right choices. They are struggling to break away. You can’t bear the thought of letting go. Welcome to adolescence.
As the mom of two adult sons, I believe I know a thing or two about teens and money. And if there is one thing I have learned, it is this: If you trust your teens with some amount of money and then allow them to make their own independent financial decisions on a level commensurate with their age and ability—and allow them to suffer the consequences of their financial decisions—you will address the five key motivators that influence kids:
POWER. Knowing their parents trust them with money empowers kids, particularly teens, to control some of their environment. This encourages maturity.
FREEDOM. Managing their own money gives teens the freedom they want to make their own decisions. Give it to them gradually, as they are able to handle it.
FUN. Teens think managing money and being responsible for how they spend it (or don’t) is fun.
BELONGING. A teenager’s participation in managing the family’s financial resources creates a sense of community. Teens need to belong and to know they are an important part of something bigger than themselves.
MASTERY. Once your young adult understands the significance of his or her role as a money manager, that teen will be open to concepts such as compounding interest, consumer debt, handling a checking account or credit card, and the basics of investing. Never miss a valuable teaching moment.
Our role as parents is to know our children, to discover their gifts and abilities and to encourage and train them in keeping with those characteristics and tendencies. Money is an excellent tool to help get the job done.
As a bonus, your children will go into the real world well-equipped to manage effectively the resources entrusted to them.
