Teaching your kids about good money management in their teenage years can often pose itself as a challenging task. Nonetheless, the skills of healthy financial behavior are a topic no parent should not stray from, as nerve-wracking as it may be. 

Luckily, technology has brought on a variety of new tools and methods that are easily available on our mobile devices, laptops, tablets, and computers. Their mass development comes as a great help to promote financial responsibility and good decision-making. 

To efficiently teach your kids about money, you first have to make a strategic approach and decide how you want to take this topic on. A good combination of theoretical information and practical knowledge is all you need to ensure a good head start for your teens.

Why you should talk to your teenager about money

There are several money-related things every teenager should know. If we take into account the undeniable importance of money in our daily life as well as the general volatility that comes with adolescence, this topic gains all the importance it deserves. 

Failing to highlight the importance of financial literacy, good money practices, and basic concepts such as spending, saving, investing, credit, and debt is far more consequential than the sometimes awkward, stressful, and headache-inducing conversations on finance. 

Kids grow up fast. It is our duty to provide them with skills they will need later in life. 

Methods to teach your teenager about money

Although teens should primarily be concerned with their school tasks, extracurricular activities, household chores, and friends, they should also be made aware of money. 

Here are our top five methods to having your teenager set up their understanding of basic money concepts and the best behavior regarding the financial world.

• Help your teenager understand the cost of life

We are not saying that your teen should be burdened by the cost of living, but they should begin to understand what it is that makes or breaks a budget and how they can keep on track. After all, chances are they will be moving out quite soon and budgeting on their own.

• Have your teenager engage in family budgeting

Introduce them to different methods of making a weekly, bi-weekly, or monthly budget and have them see if they can keep it up. Have them help you draft your next expenditures.

Help them understand between wants and needs, especially when they are surrounded by the glitz and glam of the online world where everyone seems to have everything they want. This will give them real-life knowledge and skills when working on a budget of their own.

• Encourage your teenager to save money 

Encouraging your teenager to start saving early is always a smart investment of time and patience. Sure, your teenager might be more excited to spend their allowance on cinema tickets or a new piece of clothes, but you are tasked with explaining to them that saving money can be just as lucrative in the long run.

Apps like BusyKid are here to help. Providing a Visa Debit Card and an app to track finances, this card will give your teen financial freedom and give you a piece of mind knowing that the app is teaching them financial lessons on saving, spending, and investing. 

Additionally, you won’t have to worry about unwritten homework or a mess in their room, as you can use this app to give them an allowance once they have completed their tasks. A perfect choice for kids aged 6 to 16 and all those who like to be on their phones. 

• Teach your teenager about credit score 

Ah, yes. Credit score. How many times have you heard someone say that they wish they knew better when they were younger in regards to their current credit score?

You will want to teach your kids the basics of credit and debit cards and that a good score comes with the responsible use of a credit card. This is indispensable for any bigger purchases, like a house, they take on in the future. 

• Give your teenager something to invest in

A little practice goes a long way. Contrary to popular belief that investing is something that only adults do, teens should be encouraged to invest too.

Perhaps consider enrolling your teenager on a crash course on smart investing or leave it up to apps like BusyKid to take on these lessons for you. 

It gets easier with time. Good luck!