Tuesday, May 21, 2013

3 Ways to Get Your Teen to Understand Saving

When you’ve got a teenager, it can be frustrating to see them mismanage their money. It’s hard to get them to establish good savings techniques without coming across as controlling or over-protective. On one hand, you feel an obligation to impart the very best financial knowledge that you can, on the other you don’t want to create any unnecessary tension. Here are 3 ways to get your teen to understand the importance of saving.

Work On a Budget Together

A good budget is what underpins any successful savings plan, so it’s a good place to start with your teen. Help them to work out a clear budget that allocates a certain amount of savings every week, as well as covering any expenses that they might have. Without a budget, it’s hard to keep track of weekly spending and savings, so your teen will quickly be able to see the benefits of a good budget.

For more information and quality financial advice, go to http://www.foxsymes.com.au/ and see how Fox Symes can help you and your teen to create a great savings plan and stay in control of finances over the long term. They can assist with budgeting tips and debt resolution strategies, as well as providing personalised financial advice tailored to your needs.

The Importance of Long Term Goals

Ask your teen what they really want to achieve with their savings, and help them to put it into a rough timeline. If they’re saving for a new car, work out how much they would need to put away per week to have saved up enough to get the one they want within a year. By spelling out their long term goals, you are helping your teen to understand why their weekly contribution is so important, no matter how small it may be.

Extra Incentives

Some parents advocate the advantages of incentive based savings. In this scenario, you reward your teen for their hard work with something they enjoy, whether it’s treating them and a friend to a special screening of their favourite movie or organising an adventure event for them. Whatever you choose should be based on your teen’s preferences, and can really encourage them to dedicate themselves to their savings.

While it may seem strange to reward their savings efforts by spending money on them, just remember that it is the habit of saving that you’re trying so hard to instil in them. Once they have these good savings habits, they are far more likely to stick to them as they grow up, and incentive based savings plans can definitely help them to find the initial motivation to be careful with their money.

These are simple yet effective ways to ensure that your teen understands the importance of saving without damaging the relationship between you. For a bit of extra assistance and information, consult the team at Fox Symes to ensure that you have the very best strategies to handle your teen’s financial situation as well as your own. Getting your teenager to understand the importance of saving may not be easy, but it is definitely worth it! The important part is to start early, so schedule some time and sit down to discuss a savings plan with your teen today.

Kelly is a mother of 2 teenagers and an active blogger across a variety of topics of interest to her.

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