Learning finances is sort of baptism by fire, really–you’re almost always going to make mistakes, need help, and then mess up again. That includes managing that pesky checkbook.
Teens may wonder how adults do it! How do they keep everything in order? Here’s the answer:
Because Those Adult Were Taught!
This is where you, the parent, come in. Remember that you’re dealing with “big” kids here.
Now you might be saying that it’s ridiculous to constantly guide a teen through every little financial nuance. But look at it like this: you’re not carrying them around but simply holding their hand.
This means letting your teen manage a checking account, savings account, or pay day one loan. It also means letting the teen use the money however they choose–to buy clothes, food, or go to the movies. Think of it as the next evolutionary step after the great American financial deal called the ‘allowance’. They have more freedom to exercise their independence now.
And Here’s Where the Holding their Hand Comes In
Emergencies will always occur — and most of them will be because your teen wasn’t thinking. Again, they’re basically “big” kids. They’ll screw up.
So when they constantly lose or waste money and they can’t meet their financial responsibilities — a phone, a car, gas money, yadda yadda –be prepared to back them up. It’s a hard lesson — but they’ll learn it.
It Was the Same For You
How did you learn? Your parents helped you. You learned your lesson.
And that’s why you would do the same thing for your “big” kid. As they always say — nobody learns anything unless they make mistakes!