Financial literacy was the main topic at the 2017 Teens Workshop, where credit union speakers were invited to share pertinent knowledge on how to teach teens to save before they even reach college. The CEO of the Kingston Credit Union graced the event and spoke about how the literacy program is committed to educating the youth about the value of money, ways to earn, ways of saving money. Teens were also provided with tools on how, in the future, they can make better financial decisions.
As a parent, you, too, can help your teen learn how to save for their future. Here are some things you can try.
Make A Rule About Saving. Your teen is still under 18, so naturally, you get to make the house rules that they need to follow. Make saving part of those rules by asking him to set aside a small amount of his income and put it in the bank. You can start small and then eventually increase the amount, especially if he gets cash gifts from work. He may not like this at first, but after a few months, we’ll bet he’ll be ecstatic to see how much he has saved.
Emphasize The Importance Of Budget. When they start young, it won’t be too hard for them in the future to know which ones to prioritize and which ones to give up for the meantime. This will teach him to be aware of his financial obligations and his wants. He then will be able to formulate a budget for everything, even the not-so-important ones but ones that he’s been dreaming of getting. Also, encourage them to pay their bills by themselves.
Provide Incentives For Him. You can entice your teen to be interested in saving money by matching the amount of money that you are asking him to save in his account. You can match maybe 50% for the first few months and then increase it to 100%. This will encourage him to save more month after month. Another incentive you can give is paying for half the price of their first car. The rest will be his responsibility.