Your Teen’s Financial Education

It’s pretty sad that most teenagers are not taught how to manage their money or finances while they are still in high school. One economics class isn’t sufficient to really give your teen a good idea of the myriad of ways debt can put a damper on their life goals. There are a number of different topics that you should discuss with your teen before they go off on their own to college. They include:

Earnings and taxes – If your teen has a part-time job, this can be the easiest way to start to educate them on the value of a dollar and exactly how much Uncle Sam wants of them. This can help motivate them to do better in school so they can earn a bit more than minimum wage.

Bank accounts – You should go over the basics of most financial banking today. It may be the only time anyone takes time to help him or her learn about the importance of starting a savings account for an emergency fund and separating those funds from the regular checking account.

Student loans – Be involved in any student loans that are set up for your kid. Explain to them as best as you can which are best and which to avoid. Help them pick their college experience and don’t forget to include the discussion on the different price tags associated each school.

Credit cards – Many college graduates get into trouble with credit cards due to the availability of easy credit once you graduate and get your first job. So, be sure to discuss credit cards before they are on their own.