It’s called generation gap for a reason.
Today’s teenagers are the richest, most networked generation in history and, as every parent knows, they love to spend money. Their spending is a way to assert their independence, to socialize and to establish their identity – behaviours that are embraced and encouraged by advertisers of everything from iPods to designer jeans.
Teens are burning through about $100 a week on average, and modern teens also have something mom and dad never had: credit cards to make online purchases with. As they spend, it raises difficult questions for parents who know their children will one day have to face financial reality and pay their own way in the world.
What should you do?
Here’s a suggestion: encourage your teens to see money in a broader context. Introduce ideas like saving, investing and the compounding effect. Show them how to balance today’s desires against tomorrow’s needs. At times, they may look at you like you’re from another planet. They don’t know about shared accommodation at university, sacrificing consumer purchases to pay rent, or dining on an 80-cent pack of noodles. In short, they aren’t you. They are living the dream that you’ve worked hard to attain. But with some tips from this guide, you can get them started on the path to attaining their own dreams.
Raising Financially Literate Teens