Your family has a full calendar for the next month. When, you may ask, is there time to fit in money management lessons for my teens?! Yes, this season is busy, and we typically spend more money than normal this time of year. We must plan carefully to stay on track, so why not help teens practice handling money and build their skills?
An effective way to prepare your children for the future is to let them handle small amounts of money. Children are more likely to learn lessons by managing real money than by sitting opposite you at the kitchen table and listening to your tips. This holiday season, encourage teens to budget with the money they have earned or saved.
The truly best way to instill financial knowledge is to model good money management. Just as your children pick up your other habits, they are also likely to mimic the way you handle money. Involve your teenagers in the planning process for holiday spending- show them your budget, share the way you make lists for shopping, and have them help you purchase groceries or gifts.
Help your teens make a budget for gifts this holiday season. Some teens struggle with deciding which friends to exchange gifts with. Encourage your teens to plan a gift exchange or make gifts for friends. Have them make a list of the price range they are willing to spend on each person. Once they’ve made their list, encourage them to use coupons, online sales, and their creativity to stay within the budget. Remind them to keep track of their spending, using a spreadsheet or notebook.
When the holidays pass and teens have gathered a pile of cash and checks from relatives, you have more room to teach. Some teens may want to spend the money all at once on something they didn’t receive over the holidays. To prepare for this, talk to them before the holidays about saving goals. They may have a trip or gadget in mind, and this is the perfect time to remind them that the extra money they receive can help them reach that goal.
The holiday season can be a challenge to everyone’s bank account, but it can also be a great time to help your teens learn how to save and spend their money wisely. At D&R Autoworks, we want families to enjoy the season. We are here to keep you and your family safe this holiday season.