Everyone wants to give their kids the building blocks for success in many areas, such as health, career and financial success. Out of all of these, none is as important as financial success.
Financial success now and in the future can actually affect a young adult’s health and career status. One of the number one stressors in an adult’s life is financial stress, and stress affects health.
Employers are looking at credit scores increasingly as a means to determine employment status. Here are some tips to help keep your teen on the right financial path.
It is a good idea to give your teen an opportunity to earn an allowance. This not only helps instill good work values, but financial responsibility as well. It should be decided what exactly the allowance will be and what responsibilities are to be given. Will he be working for his everyday spending?
Teach teens to use credit responsibly and why their credit rating is important. Young adults are bombarded with credit card offers even while they’re still in high school. Teach them to use credit wisely and responsibly. Explain what should and shouldn’t be financed on credit cards. Educate them about carrying a credit card balance and how to build their credit ratings.
If your teen has the means to pay a loan, let them finance something small such as a used car so they understand what it’s like to fill out a loan application. Let them see the importance of making payments in a timely manner or see what the consequences are when you finance something and the payments do not get made.
Help them know where to seek help in an emergency situation. Plain Green Loans is providing personal loans to help people out of a tight jam. Advise them of the importance of saving for emergency situations.
Involve teens in the budgeting process for the household. Let them see what every day household expenses may cost, such as electricity, water or groceries. This helps avoid so-called sticker shock when they get out in that real world.
As financial times get tougher and tougher for the average American, it is becoming more and more important to teach good financial strategies at home. Teach your teens habits that will set them on the right path for financial success in their future.