Teens are quite aware of the terms like finance and income due to exposure of information technology in the present times. Teaching them to save money can be done at this time. This would go a long way in helping them to become sensible adults in dealing with money. They would learn how to cut on unwanted expenses and use money wisely. There are a few sensible ways of teaching the teens to save and manage their money. Some of them work part-time and do summer jobs and earn good amount of money. However, if they spend the same in unwanted expenditure then teaching them how to save money is important.
Following are a few steps which can be taken in order to teach the teens how best to save their money and use it wisely.
1. Parents act as role models
Kids look up to their parents as to how they spend their money. If they find them spending money in unwanted things then they are also going to follow the same. If they see them spending wisely they would inculcate the same habits which would remain with them for the rest of their lives. They would learn the benefits of saving money and usefulness of the same in real time.
2. Opening a bank account
Opening a bank account for them would be very helpful in managing the money. They would easily be able to keep a tab on their savings and outgoings and would learn better ways for management of their money. The money they save could go into something fruitful such as education or in buying a sports kit. This would help them understand the purpose of saving money and using it when real need arises.
3. Understanding of budget
Teens usually do not like the word budget which they think is something that restricts them from spending their money. Here comes the teaching of difference between wants and desires. One may want a lot of things which actually are not essential requirement. The teens could set priority of their needs and budget according to the same. The things which are not really required can wait for a while.
Teens can easily pick the above points and this would help them in actual saving and managing of their money. However this is not a one time teaching but an ongoing process. Perseverance in efforts to teach and guide them in saving and managing money will deliver the results. This would instill a positive habit in them which would help them in managing their money and leading a comfortable life.