4 Ways to Help Your Teen Learn to become Financially Responsible
Parents play the most significant role in shaping the personalities, futures, and destinies of their children. From habits and practices to thought processes and ideologies, children imbibe almost everything their parents teach and model. Therefore, the responsibility for parents to be attentive, mindful, and constructive in their approach cannot be stressed enough.
Among the various things parents have to teach their children are the virtues of self-reliance and responsibility. Often, in their attempt at being protective of their children, parents tend to raise them more dependent than they should be. In the case of GenZ teens, the need to empower them becomes even greater. This is a generation that has an evolved maturity and the ability to take on greater roles with ease. As parents, we need to embrace this and show them how they can capitalise on this strength even further.
GenZ teens are largely self-assured and independent. They need little to remind them of their abilities. Parents, however, play a crucial role in teaching them certain life lessons. Financial responsibility is among the most critical competencies we can hone in them.
Here are some ways to help teens become more financially independent:
Build shared responsibilities
GenZ teens are very calculated in their decisions and moves. Building a sense of responsibility among them can benefit them greatly. Allowing them to partner in the process of spending and managing finances can enable them to build competencies like planning and budgeting. Allow them to make simple miscalculations and errors under your care so that they can learn how to be more cautious in the future. Assign certain financial responsibilities to them. This could be as simple as taking care of groceries for the month, planning all recreational expenses, or even the annual holiday budget. Be open to their thoughts and suggestions, so they feel valued and heard. Another great way to empower children financially is to create their own account. A simple account with limited resources can be created for children to manage their own purchases and payments online.
One way to do that while having the ability to monitor their expenses is by creating a FamPay account. While this can continue to be supervised by parents, it can teach children lessons like budgeting, affordability, and the value of money. You will be surprised by the results. GenZ children are watchful spenders, and you may notice them stashing away some money as savings.
Model the right behaviour
Although GenZ teens have their own ideologies, there is a lot that they imbibe from watching their parents’ behaviour. Discerning with non-essential purchases, developing a saving tendency, and letting go of certain choices are things children tend to pick up as they watch their parents in their early years.
Often, even without teaching children, you can set in place certain fundamentals by simply demonstrating them. As they grow older, you may make them part of the process by discussing ways to improve savings, cut down on superfluous expenses, and make more cost-effective decisions. Given the amount of exposure GenZ teens have to information and the astute acumen they innately possess, you will find that there is more to learn from them than you can teach.
Set small, achievable financial goals
Managing money also means having contingency funds, and building reserves for unforeseen expenses. A great way to help children experience these situations in slightly less impacting ways is to make them set financial goals. Children who manage their own money must have budgets and goals. Helping them organize these and chart actionable plans to achieve their goals will help them understand control, planning, and monitoring expenses. Apart from enabling children significantly, this also teaches them important lessons of accountability and diligence. A good way to demonstrate this is by giving your child pocket money. You could instrument this as a reward for an achievement, or even a birthday gift. Help your child identify and allocate a portion of this money toward their savings, and help them list down expenses and their priorities. This will help children set their own goals and be responsible for them.
Communicate with them
We have conventionally grown up in settings where children were kept away from discussions around money, financial positions, and decisions. Life has come a long way since then. Especially with GenZ teens, it is important to ensure complete disclosure about financial status, concerns around money, and constraints being faced. GenZ teens are highly sensitive and aware. They possess the ability to empathise and ideate to suggest alternatives that may prove credible. They can find innovative ways to approach problems and think unconventionally. Their inputs may add a lot more value than you bargained for.
Making them feel involved will help give them a sense of participation and investment and show them ways to equip themselves to be more financially responsible in the future.
Learning Financial Responsibility
The current generation of GenZ teens is growing and experiencing things at a much earlier age. With greater knowledge comes the greater ability to handle affairs. Allowing them opportunities to be more responsible will imbibe a sense of self-worth and self-reliance in our GenZ teens, and prepare them for the larger roles they will eventually take on.
Financial responsibility is the first among the many steps you will need to take to partner with your GenZ teens. Hence, FamPay accounts are a great way to help you take measured steps in giving your children life lessons in autonomy and self-sufficiency. This can allow them a taste of independence and control, and help you prove to your children that you believe in them.
With each step you take towards them, you will experience a sense of connection and fulfilment in the bond that you share and the abundance that they bring to your life.
It's time to get your teens to become financially responsible, download FamPay app now!