Teen Money Wise Topics for Parents
When most teens are in high school, they do not learn effective ways to handle their finances for years to come. As many teens throughout the state of Texas gear up to take on college in the coming months and years, these are few things they should understand.
Wants VS Needs
Do they understand the difference between the two? Once they are on their own, spending money may get out of hand if they don’t. Do they need cable, dinning out, the new Jordan’s or Apple phone? We know the quick answer is no. Deciphering the needs between the wants is a learned trait. Sit down with your teen and create a list of appropriate needs and wants. This will help balance their budget accordingly.
Banking Basics
Parents need to distinguish the differences between what a checking and savings are. Discuss interest rates, minimum balances, overdraft fees and ATM fees. Writing a check may also come in handy if they do not have time to get a money order or cashier’s check. Teach your teens how to understand their mobile banking app and all it’s features.
How to Use Credit Cards
Teaching teens the difference between a debit card and credit card is high on the list of need-to-know lessons. Whether they have their first credit card or are using yours, teens need to understand money doesn’t grow on trees. Swiping a card means it comes from an account. Let them know the balance needs to be paid monthly, to not be charged the interest rate for the credit card.
How to Make a Budget
Your teen will need to know how to make a budget, even if they are staying in dorms. Showing them a outline of a budget and what it entails is necessary for them to manage their funds optimally. If you are comfortable with them knowing your household budget, start with showing them yours. There are many websites that can be used to help with budgets that can be good resources for your teens.
Post author: Kayce Barajas
The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.