5 Important Personal Finance Fundamentals Teens Need to Know
Personally, I believe that one of the most important things we need to intentionally teach our children is personal finance fundamentals.
As homeschooling parents, we know life skills for teens are important, but they often get pushed out of our busy days because we’re so focused on the “school” part of homeschooling.
Teaching teens how to handle money is essential for them to become successful, independent adults. Even if you don’t sit down and purposefully show your kids how to spend, save, and budget their money, they’re learning by watching you. What are your financial habits saying to them?
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My parents never talked to me about money, but they showed me that life was about living paycheck to paycheck, never getting ahead, so why bother. These are NOT the lessons we’re teaching our kids. Instead, my husband and I have showed our girls how to work hard to get out of debt, stay out of debt, build an emergency fund, and save for retirement.
We really want them to understand the value of money management which is why we’re doing everything we can to teach them, including using money activities as part of our lessons.
Wondering if it’s really that big of a deal for teens to learn about money?
Consider just 2 of these stats from American’s are Failing at Financial Literacy in Forbes.
- 44% of Americans don’t have enough cash to cover a $400 emergency
I don’t know about you, but emergencies rarely happen in my life on a set schedule and they’re rarely under $400. We must teach our children how to save by living within their means and practicing delayed gratification. Because if you don’t, that $400 emergency will go on their credit card and they’ll immediately be in a deeper hole than before.
- 33% of American adults have $0 saved for retirement
The money needed for retirement grows every year while the government assistance many are relying on shrinks. If we teach our kids how to save for retirement early, they won’t have to struggle when they’re older because they’ll be prepared.
As a parent, these stats should terrify you and illustrate why teaching teens how to manage money is incredibly important.
So, what should teens know about money?
5 Important Personal Finance Fundamentals Teens Need to Know
My husband and I have put together some things that we are doing in our family to make sure our girls become financially literate. We hope you’ll read along and share your experiences with us as we give you a glimpse into our lives.
- 2 Fun Board Games that Will Teach Teens About Money Management
- 50 Fantastic Ways for Teens to Make Money
- Teach Your Teen How to Be a Powerful Saver Now
- Teach Your Teen How to Make Smart Spending Decisions
- Teaching Teens How to Budget and Why It’s an Important Skill
Other Money Management Resources
- Common Cents Without Dollar Pain: First Guide for Teenagers and Young Adults to Money and Personal Business for a Lifetime
- The Kids’ Money Book: Earning, Saving, Spending, Investing, Donating
- Smart Piggy Trio Bank
- Not Your Parents’ Money Book: Making, Saving, and Spending Your Money
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