Developing financial knowledge and awareness of budgeting for teenagers is an important step in ensuring that they become financially responsible and independent adults. Incorporating education around finance and budgeting into conversations with your teenager, will help empower your teenagers to make informed monetary decisions.
And the good news is, it does not have to be complicated. Begin by consistently having conversations about the fundamental responsibilities of budgeting, importance of saving, impact of credit cards and accumulating interest, bank accounts and good vs bad debt. The key to developing good habits is repetition.
Below are actionable steps towards early financial awareness for your teenager;
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Identify Financial Goals
Just because they are teenagers, does not mean that establishing financial goals is not important, but start off focusing on their more short-term goals such as buying a new pair of jeans or purchasing a concert ticket to attend with their friends.
Once they start to show a level of responsibility and understanding around the short-term goals, begin to discuss longer term goals like purchasing a car or saving up for college expenses.
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