Educate, Earn, Spend, Save & Give

Teens need to be educated to grow in various aspect of their lives to increase academic intelligence, emotional intelligence, social intelligence and financial intelligence etc. The following tips may help you in the process of parenting financial intelligence in your teenager.

Remember, it’s never too late to start using proven methods that will leave a legacy of financial freedom for the next generation.  College administrators are aware that more students drop out from credit card debt than from academic failure.

1. Encourage part-time work as a teenager since this is a predictor of financial successful persons.  This will decrease an attitude of entitlement and increase self-esteem at an early age. Perhaps being allowed to work a part-time job can be a reward for good grades.
2. Help build a respected reputation: Remind them to leave each position of work without broken relationships (if at all possible) to help build a career based on integrity and honesty. Increase awareness about their reputation in the community through social media where potential employers and college administration can view their profiles.
3. Support (without control) their interests in volunteer opportunities that increase personal strengths and skills that can build toward a career they enjoy. This may mean inconvenience for you due to the increased demands of driving time.
4. Teach contentment or living within their means and the difference between needs and wants.
5. Teach self-control and seeking wise financial counsel. They need to know about the realities of internet scams, credit card interest rates and debt. If adults, teach them to read the “fine print” before signing a contract for cell phones, gym memberships, personal trainers or  other service providers.
6. Help them learn delayed gratification through establishing financial goals and saving for their future security or reward.
7. Instead of credit cards that can easily be abused, some parents open a bank account with a debit cards that can help a teen learn to manage finances. This will only be effective if they keep a running balance and are taught to reconcile each month. You may want to have the bank decline the card if there are not enough funds to cover an expense or tie their account to a savings account for overdraft protection.
8. Educated them about how  Income Tax, Medicare, Unemployment, FASFA and Social Security systems work.
9. Teach them stewardship: Help them identify a responsible charitable organization where they can give time and donations back into their community.
10. Model financial consistency and stability rather than anxiety to promote shrewd thinking for financial security today and tomorrow.

Further information: www.chadfoster.com

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Author: Beth Holloway, MA, LPCA for Miller Counseling Services, PC

Beth Holloway, MA, LPCA is a Licensed Professional Counselor Associate and has more than 12 years’ experience in the mental health field. She has recently joined the Miller Counseling Services team and specializes in counseling individuals and couples who have experienced all types of losses including abuse, domestic strife, and trauma. She enjoys leading group therapy classes in the areas of Divorce Recovery, Spiritual Enrichment, Couples and Parent/Child Relationships, Grief Processing and Depression Recovery. Beth has had the privilege of traveling all over the United States and to more than 10 foreign countries and has been enriched by learning about people from diverse cultures and ethnic groups.