It's none of your business- An adage that kids often hear when they question parents about income, investments or savings. When curiosity strikes among kids either because of YouTube or peer discussion, they seek answers to their undefined questions. Even silly blathering among the kids develops inquisitiveness.
In the world of digital media and knowledge, kids approach their parents for answers when it comes to finance. While parents of teenagers discuss other social aspects of status, alcohol, and drugs, but remiss the big talk of money. Your kids in their teens understand the value of money but there is more to finance. A complex subject with a healthy mix of math, economics and psychology.
As parents, you try your best to involve your kids in your income, expenditure, losses, gains and other money-related aspects. But, still, there is a huge vacuum created and is majorly because of the absence of consistency. There is no standard procedure or established tools on how to guide your kids, experts suggest starting a conversation about finances when they are young and ensuring it is effective by making it age-appropriate focusing on building literacy among them.
Educating your kids with resources and enriching them with knowledge are two variances. Teenagers are a deadly combination of a spirit of inquiry and torpidness. The abundance of both these qualities makes them great learners but slow implementers. Today’s job market is competitive and experiences tend to bring more earning opportunities. Get your kids exposed to different earning opportunities where they understand the reality of income and expenses.
Try to source practical learning experiences for kids. If you are in a business set-up, it could be a lot easier for them to understand and move away from just the handwritten notes and standardised concepts of Cost Price and Selling Price taught in school.
How you run your house is a very critical aspect of managing your finances. The learning correlation of interdependence and money management is paramount for your kid's financial planning lessons. As the world heads to independent living that is great but the value of interdependence cannot be ignored. You can start with examples of how as parents you have collectively built your house or how the division of expenses helps you manage your money better. In any scenario, whether a single parent or only one parent has a source of income, the functionality of money management would have been possible due to the existence of interdependence.
Income and interest, fortunately, enter the kids’ cerebral system at a tender age. It is Investments and involvement that take a miss owing to a lack of education, discussion and decisions. The eye for investments cannot be gained in a day but the interest for involvement can be built by starting one day.
There are many effective ways to indulge your kids in money and financial matters. Once teens reach a certain teen, say like 14, involve them more into your banking systems. Ask them to assist on certain matters and expose them to digital methods as much as possible. If there is a credit in place, discuss it with your teens briefly. Make them understand the marshy world of debt.
Finance for your teens is like a dark tunnel tucked in between remorse land with no light and reverberating unfamiliar sounds. In this myriad of financial systems, they look to their parents to be the light. The light of experiences, knowledge and guidance. Be the teacher, student and most importantly a friend to your teens as you take them through the unexplored path of financial freedom, independence and interdependence.