As a parent, you’re used to handling your family’s money. You buy the groceries, pay the mortgage and the car loan… and the list, unfortunately, goes on and on. But as your children get older, it becomes clear that teaching them how to handle money is extremely important to their success in adulthood. Although this can be an intimidating topic to address, we have a few tips to get the conversation started.
Help Them Open a Savings and Checking Account
Start joint accounts with your teenager that you both can access. This is especially important for them when they get their first job. It drives home the idea of making decisions to save and spend with the income that they have earned.
Budget with Them
Whether your teen has an allowance, a part-time job, or a combination of both, it is beneficial to sit down with them and put together a monthly budget. This way, they know how much money they can account for each month, and what expenses/activities it can go towards in their everyday life.
Talk to Them About Credit
You don’t need to hand your teenager a credit card to explain to them what credit means and how to build it. The bigger picture goal is to educate them on why credit is necessary further down the line in life. If your college-aged teen is worried about building credit, check out our blog on this topic.
Explain the Concept of Debt
Debt can be the hardest part of the money conversation, but it is not one to slack on. Be realistic, and explain to your teenager that debt is real and comes in many forms. Planning ahead can help tackle this issue.
Don’t shy away from talking about money with your growing teenager. And don’t worry – you don’t need to have all of the answers! Schedule a meeting with one of our bankers here at Heritage — or stop in! We can help teach about banking and money, with lessons that will stick with them for a lifetime.
Let’s get the conversation started today!