Being smart with money is a skill people of all ages and all walks of life need to possess. To develop this skill takes some practice, just like in tennis and golf. The reality, however, is very different; up to 40% of households in the United States cannot withstand an unforeseen financial event that costs $400 or more. This is why you want to patiently train your teens to manage money so that they do not fall within this statistic.
Developing positive habits regarding finances from a young age is therefore, essential for all. According to a survey done in 2011, only 32% of teens between 16 and 18 knew about credit cards and their interest rates.
It’s never too early to begin teaching your kids about financial responsibility. Here are some reasons why teens need to begin understanding finances:
They can better utilize and save their money earned
The youth of today are busy trying to secure a future for themselves. Having a part time job gets them one step closer to achieving the independence and sense of responsibility they’re looking for. Approximately 50% of all youth aged 16 to 24 are either full time or part time employed.
Make sure your kids are receiving all the information they need of ways to save and utilize their money. Talk to them about saving up and the benefits they can reap from it. Since they’re still living under your roof, they can save a significant amount of the money they earn. Teaching them how to save and monitoring that in fact they do save their money is a valuable life lesson that should be taught by the parents to teens, while they are at home.
Achieve their goal of buying their first car or moving out sooner
The youth of today are incredibly competitive. Their driving force for having their own car or moving out of their parent’s place is to upstage others. Gaining independence is a good thing and you as parents can help them find their ground. Introduce your teens to our financial experts. We can help them achieve their long term and short term goals. With a professional working closely with them, they will surely learn how to best manage their income as well as save and invest it. At Canberra Company we have some lessons and some drills to show teens how to save, invest and then reap the rewards.
Teens can learn the importance of structuring their college financial planning
Another essential part of teaching financial responsibility is planning for college. On average, students have to pay $50,900 for a degree from a private university. In some cases it can cost $50,000 per student, per year. Speaking with our financial experts is a step in the right direction to turn this goal into reality.
We at Canberra Company provide college financial planning for parents and students. Our service helps students save up, invest, and gain financial aid to get into their dream college. We also offer financial planning services as well as estate planning. Schedule an appointment with us at (805) 962-1040.