Four Ways to Improve Your Teenager's Money Management
Financial literacy among teenagers in the UK is plummeting.
Fortunately, it's relatively easy to promote good financial habits in your teenager, even if they are surrounded by more consumerist pressures than you ever had to contend with.
1. Encourage Teenagers to Use Technology
The UK is going through somewhat of a financial technology boom at the moment and there is a whole load of easy-to-use applications out there that can help you and your teenager to manage money. One of our favourites is Revolut, which has a really slick mobile app and has features that enable you to manage save towards multiple goals and get real-time updates on your account activity.
2. Be Frank About Money
In the UK, we're a humble bunch who, perhaps unlike our American cousins, would rather shy away from talking about money if we can. Families don't need to discuss money over the dinner table each evening, but simple things like letting your child know how much the weekly shop costs will go a long way, particularly when they are tempted to buy some overpriced tee-shirt.
3. Give Your Teenager Financial Responsibility
Unless teenagers feel a sense of ownership over the money in their own bank account, they're not likely to appreciate its value. Therefore, it's a good idea to ensure that your teenager has a bank account of their own from an early age. Seeing the numbers go up and down in their own bank account will likely lead them to reconsider that next extravagant purchase.
4. Let Teenagers Earn Their Money
Ultimately, we all make mistakes with our finances and subsequently develop better habits to avoid repeating those errors. However, it's only possible to truly learn those painful lessons if the money going down the drain belongs to you. Besides, gaining meaningful work and building workplace skills won't go amiss.
With nearly 25% of young Brits in constant debt, it's clear that more needs to be done to educate teenagers about personal finance.*
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