Managing your money as a young adult may seem a little more intimidating and quite a hard thing to do for most of us. That is because teenagers doesn’t have to think of any adult responsibilities, therefore, they just keep on spending their money from here and there, especially for parties and hang outs with their friends.
Also, teenager’s mind setting is that the future is still distant so they don’t have to save for it as of now. If you have a teenager, or you’re probably one reading this, here are some personal finance tips that you could apply.
Share everything to them
Be open. As much as possible, if your teenager is asking for the latest iPhone, sit down with them and explain deliberately where all of your salary is going. Go to top10binaryapps.com for some great financial advice. From your monthly bills to your daily expenses, make sure they have understood everything. In that way, they can understand your side as to why you can’t buy them a new electronic gadget or anything for that matter.
Set real-life examples
You may want to expose your young adults into reality. There are necessary expenses that you need to pay such as monthly rentals (if you are still renting a house) and such. Make them realize how important monthly rental is than any other unnecessary expenses such as buying a new camera or Nintendo DS.
Give them a debit card
As much as possible, let your teenagers experience what it’s like spending money both in cash and virtual. In that way, they can determine if they’re spending more money using a debit card. It can be also a preparation for them to use credit cards in the near future.
Motivate them to find a part-time job
Make them work hard for what the things that they wanted. There are lot of part-time jobs out there that they could try. Now they will know how it feels like spending their hard-earned money over nonsense things. That would also help them budget their money wisely because it is the fruit of their hard work.
Prepare a savings habit
In our society nowadays, college is becoming more expensive and pursuing your career might be quiet costly. See to it that they really understand where all of this is coming from. Involved them in family conversations regarding college costs as much as possible and let them understand that how you are saving money for future expenses. Got extra cash? Spare a little amount and invest in binary options Banc de Binary.
List down all their needs vs. wants
To help your young adults determine what to prioritize in spending your money, ask them to list down all of their needs as well as their wants. Help them achieve their goal by budgeting their money wisely—whether it’s a new pair of shoes or a new camera for their hobby.
There are actually a lot of ways to make your children understand the concept of handling money. However, there are some instances where you have to learn the lesson firsthand so that you’ll know what to do the next time around when you encounter it.