Today’s article is from CNNMoney.com, titled Teach you teen paycheck savvy, and gives good tips for ways to steer your teenager toward a financially sound future. What tips does it offer? Read on:
- Taxes – Gross versus Net, FICA versus income taxes…it’s all confusing to a teenager. Actually, it’s confusing to a lot of adults as well (unfortunately), so if you don’t understand the difference, look it up, then sit down with your child when they get their first check and explain the differences to them. It’s important for them to know what they make versus what they bring home, and where what they’re not bringing home is going.
- Bank accounts – Help your teen open up both a savings and a checking account. It’s not only important for your teen to learn how to use a checking account, including balancing a checkbook (which you should teach them…again, learn how to if you don’t know, because you want your child to have a good financial start, don’t you??), but it’s also important for them to learn how to save money, like starting their own emergency fund, car fund or iPhone or iPad fund etc. Delayed gratification is a very good lesson for a teen to learn, in a world of “My super sweet 16″ TV shows and teens who expect to be bought $200 blue jeans.
- Micromanaging – The above stated, let them mess up with the first paycheck. New fancy shoes or video games might be awesome to have right then and there, but when they have no more money because they blew it all, don’t give in and give them money from your own wallet. Let them see what it’s like to be broke. It needs to hurt a little.
This is a great article, so check it out! Don’t let the opportunity to impart good financial lessons to your teenager pass you by!!!
