In today’s age, it is more important than ever that parents provide their teenage children with the knowledge they need to make in the financial real world. Young people are faced with financial challenges the moment they leave the safety net of home. Everyday we hear about what happens when they are not prepared: record debt, foreclosures and bankruptcies are just a few of the problems people experience. Those are the big ones but consider the fact that just one credit card late payment will haunt them for 7 years. These problems can all be avoided by giving your children the foundation financial education skills needed for financial independence.
Looking at the statistics it is apparent the majority of parents do not have enough knowledge to raise a financially responsible teenager. Public high schools have been teaching similar subjects for the last 50 years and financial education is not one of them. Because of this, many parents never were taught about money and feel unprepared to raise a financially responsible teen.
Raising a financially responsible teen in today’s society is critical. There are ways to raise your child to achieve financial independence at a young age. Even if you have made financial errors yourself there are resources available to help give your children the advantages many parents wish they had.
5 Foundation Lessons to Teaching Your Teenager Financial Responsibility.
Helping your high school or college age child to achieve financial independence will give them an advantage that they will use everyday of their life. Below is a list of the top lessons that will establish a solid foundation to raising a financially responsible teen.
1. Ethics – Developing a high moral character will help your teenager earn more money, be a better job candidate and be an overall good person that people respect. In today’s society being a well respected member of the community will help them gain financial independence. The most wealthy and well-respected people are those with high ethical standards.
2. Communication A key to bringing up a financially responsible teenager has a lot to do with their communication skills. It gives them the power to persuade people and align others with their personal goals, which is fundamental quality to greater earning power. Helping them to develop their writing and speaking skills will increase their chances of getting hired and they are more likely to get paid what they are worth. What’s more great communicators are more likely to be leaders within a company or become successful entrepreneurs.
3. Proper mindset-Negativity hinders all things in life and can destroy teenagers chances of achieving financial independence. Teach your children to think with the end goal in mind. Creating a vivid image of their desired goal will give them the motivation they need to reach their dreams. Studies show that positive outlooks attract positive events so encourage them to develop a mindset that will help them develop into a happy, well-rounded, financially responsible adult.
4. Passion -Help your teenager to find and follow their passions. Give them advice on how they can make money by following their passions. When your child loves what they do it doesn’t feel like work and they excel at what they do. By understanding your teens dreams you will get to know them on a deeper level plus you’ll be helping them develop a skill that will last a lifetime.
5. Organizational skills- Achieving financial independence at a young age will be aided by having good organizational habits. Lead by example; show your teenage child how having an organized schedule, space, and life will benefit them. Doing so will allow them to reach their fullest earning potential
These five tips lay the ground work to achieving financial independence. Of course additional financial lessons need to be taught to help them handle their money; however helping your teen to have a good head on their shoulders is the critical first step.
By helping them to develop these skills you’re giving them a head start to achieving the freedom of not having to worry about money. You can help your child achieve financial independence at a young age by giving them the skills necessary to go out and make it in the real world.