Expert tips to teach teens about money
Statista: 39% of kids aged eight to fourteen have a savings account
(InvestigateTV) — Around 47% of parents talk to their kids about money at least once a week, according to the 14th Annual Parents, Kids & Money survey by T. Rowe Price.
Michael Joyce, formerly with Agili and now with financial firm CW Advisors, said one good way to teach teens is to help them open a savings account and have them put some of their earnings from their first job in it.
He said you could help them set up automatic transfer, so they see the value of saving and how easy they can put money aside. For example, instead of buying your teen a new gaming system or cell phone, use it as a chance to teach them how to budget.
“Look at the total cost. Look at the monthly maintenance cost for those things,” Joyce suggested. “And look at how long they’ve have to work, say in a minimum wage job to actually earn that type of money to pay for the cell phone.”
He said making them pay for things gives them perspective on how much things cost and how it fits into a monthly budget.
He added that these are small lessons that will carry over into the college years and eventually when they are in the working world.
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