Teaching teens that money matters

Teens want the keys to the world of adult finance, but as their financial choices become increasingly complex, they are going to need driving lessons.

Most parents agree that the best way for teens to learn about money is through hands-on experience. Unfortunately, only one in five parents involves their teen to a great extent in the family's budgeting and spending decisions, and one in four doesn't involve teens in these important activities at all. The good news is that teens are interested in learning about money. In fact, we imagine that a large percentage of teens agree that learning about money management is one of their top priorities. After all, teaching teenagers how to use financial tools such as chequing accounts, savings accounts, mutual funds, stocks, bonds, debit cards, and credit cards can better equip them for the important choices and decisions they'll have to make as adults.

To help teens learn about money management, parents can take advantage of the following tips:

1. Include them in discussions about the household finances

Make discussions about the household finances a regular part of everyday life. Current events in the economy provide additional opportunities for family discussion.

2. Be prepared for their financial rites-of-passage

Whether it's a first job, saving for a car, using a credit card, or saving for college, real-life events provide opportunities to bring basic financial concepts to life.

3. Teach them how to use financial tools

You should help your kids understand financial tools like cheque books, saving accounts, and credit cards. While your kids are still under your roof, you can teach them how to save, use a credit card wisely, and balance a cheque book.

4. Open an investment account for them

The best way to teach is to engage them in how their educational funding is being invested, and even bring them along when you meet with us so they understand the responsibility of investing.

5. Knowledge is Power

We can arrange to have your kids receive our newsletter so that they can learn how investments work and about other financial matters.

If you would like to have them included in our newsletter program, contact our office with their information.

The good financial habits that your children acquire today can last a lifetime.