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The money skills your pre-teens need to understand

Having a financially responsible teenager starts by having money smart pre-teens.  Fortunately the basic skills to teach your pre-teen that will put them on the path to being a financially responsible teenager are relatively simple to teach.  Kids as young as 8 can often start learning these skills.
Given the age, what can parents expect kids of this age to understand?
It all starts with them understanding that there are three things a person can do with their money. They can spend it, save it or share it. Most pre-teens understand that money can be spent, it is teaching the share and save concepts and most importantly, smart spending habits.
How can savings concepts be taught to pre-teens?
Start a savings account for them with birthday or other money they receive. If they have a mobile device, get them signed up for online access so they can see their balance. And the next time they want something really big, have them save for it before buying it, even if you are giving them the money for chores or other odd jobs as a way to earn the money.
Are there skills that pre-teens need when it comes to spending money?
The first is the basic concepts of budgeting. It isn’t the full-fledged budgeting that an adult would do but if more the idea of not spending all of the money they have or get at one time. This concept really helps with reinforcing savings habits especially if they have a short term goal of something they want to buy and need to save for 4 – 6 months to have enough money.
Is it easy to teach basic budgeting habits to a pre-teen?
One of the best ways is the keep the change game. The concept is to give them more money than something they want costs and tell them they can keep whatever is left over. A great example going out for ice cream – if a cone costs $5, give them $10 and let them keep the change. You will know quickly if she have a saver or spender based on how much they actually spend of the $10.
Are there other ways to help pre-teens understand about money concepts?
One the best is to have them help with grocery shopping. As long as you practice good habits they will learn great habits too. It starts by showing them how you create a list, look for coupons and then when at the store, that you stick to your list regardless of what else might look good that day.
Are there other shopping tips to pass along to them?
One of the most important is comparison shopping, show them how you research and compare not only price but also quantity, quality and other factors to be sure you are getting the best deal possible.  This also helps them understand that not everything should be purchased from one store if someone is being smart about money.
What in your opinion is the most important method for teaching kids about money?
It is without a doubt parents talking to their kids about the family finances on a regular basis. By explaining your choices, you help them understand the decision making process required for solving money matters. Seeing financial problems solved is the greatest way to impart financial wisdom to your children.

Posted: 7/20/2017 with 0 comments

Categories: Kids and Money, Money, Money Matters, Relationships, Students

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