It’s really not fair, or responsible, to let your kids enter the real world with an inappropriate understanding of how money works. You need to start teaching them to become money savvy now and this is how.

The modern teenager may have the answers when it comes to all things technology, however, when it comes to money matters, they are probably in the dark – just like teenagers before them. But can you blame them? As a teenager you don’t have to worry about any financial obligations; your expenses are minimal, there is always food on the table and your parents pay for your clothes and toiletries, and the lucky ones even earn an allowance from their parents.

It’s really not fair, or responsible, to let your kids enter the real world with an inappropriate understanding of how money works. You need to start teaching them to become money savvy now and this is how.

Open a savings account for them

We have said this time and time again; the earlier you start saving, the better. Now we aren’t saying that your teenager needs to start investing in the stock market or in a high return investment account – a simple savings account will suffice. By showing them the ways of saving while they are young will only help them get into the important habit of saving when they are older.

Teach them how to budget

The all-important term: budget. Sit your teen down and show them how to create a comprehensive spending plan. Explain to them that by creating a budget, and sticking to it, they will most likely have more money to save at the end of each month. A good way to get them to understand what it means to budget is to give them a reloadable card with their pocket money already loaded into it. Once the money on the card has run out, they don’t get any more until the following month.

Speak to them about money

Don’t lecture your teenagers about how to manage their money wisely; we all know that teenagers turn off the minute they think their parents are trying to “force their ideas” onto them. Rather casually chat about money in conversation and keep the tone light and non-evasive.

Show them what it means to work for their money

In South Africa, teenagers are allowed to start working from the age of 16 so why not encourage your teens to get a job? Be it as a hostess, waiter or sales attendant, this is probably the best way for them to learn how to manage their money. If your teen is under the age of 16 and cannot work yet, it may be a good idea to pay them for doing small chores around the house.

Consider your own spending habits

People are creatures of habit and more often than not, children mirror their parent’s practices. If they see you spending unnecessary money, not budgeting or not saving, they will be less likely to take money advice from you and may fall into the same money routine as you.

It is important to remember that teenagers are still children so be patient with them if they refuse your advice. Sometimes the best way for them to learn is by making mistakes.