The tween and teen years are a challenging time for kids.
Not only do they experience new social situations, but they also take on additional responsibilities, and all of this contributes to the formation of a significant part of their relationship with money.
Children of this age are at an appropriate developmental stage to fully comprehend the concept of money. They are beginning to grasp the concept of the consumer world. This presents a fantastic opportunity to make the concept of money more approachable.
In addition, this is the age at which children begin to develop genuine relationships with their peers and start comparing themselves to those of their contemporaries. If parents start having conversations with their children at an early age and on a regular basis about topics such as income inequality, wealth inequality, and the value of money, they will be able to better prepare their children for a successful future.
Set saving goals
When your child comes to you with a request to purchase something that is out of the ordinary, such as tickets to a concert or a video game, you should suggest that your child devise a plan to save money in order to pay for what they want.
You should compute the cost and devise a strategy for how you can save for it, as well as evaluate whether or not it falls within the scope of your capacity to save.
In fact, even adults do not always connect their monetary choices to their long-term objectives.
If you have a very clear idea of where you want to go, it will be much simpler for you to choose the path that will get you there.
Look at how to earn money
Assist your child in coming up with ideas for how they can earn money so that they can start putting money away toward their objective.
If you are in a financial position to do so, consider giving your child pocket money or paying them for completing certain chores around the house.
Understand needs vs. wants
Your children, who now have their own money to spend, will have to learn the difference between things that they need such as tween clothes and school supplies, and things that they want now that they have their own money.
In addition to this, they will need to develop the ability to postpone a purchase.
Have them do research on the item that they are interested in purchasing; this will teach them how to spend their money wisely. Demonstrate to them reviews found online and assist them in distinguishing between paid advertising, influencers, and unbiased reviews.
Don’t shy away from talking about money
It used to feel awkward to bring up the subject of money in conversation. However, the opinions of experts agree that they are very important, particularly for children.
You can get things started by asking your children questions, such as how they would describe the values that your family upholds and how they would react if a friend asked them to pay for something that they did not wish to pay for.