Welcome back to How to Teach Your Preteen About Money, the second part in my Teaching Kids about Money series!
Last week we talked about money lessons in the early years, and this week’s topic is how to teach your preteen about money. Trust me, preteens are in a whole new world when it comes to money; however, it’s a fun age to teach about money and a great time to begin to teach them about the complexities of it.
Let’s really start digging into what money looks like to an 11-13 year old. When you teach your preteen about money, you are giving them more responsibility, which means they will get their hands on larger amounts of money. This is the time to really teach them about paying bills, saving, and spending.
This is a huge part of life and a great lesson to teach your pre-teen. A great example might be to explain to them how paying bills impacts their life in a positive way. Rent, utilities, and insurance are all bills that need to be paid each month in order to survive.
Of course, you don’t want to make the lesson too heavy for them because they are so young. Selecting a real example from your own household, however, will really help your preteen learn the rigor and responsibility of paying bills.
It’s hard to find someone who doesn’t enjoy spending a little bit of money here and there. Except, when you make money, you need to have some willpower in not spending it all. That’s where the value of spending responsibly comes in. You definitely want instill the distinction of needs versus wants.
Your preteen might really want that expensive dress or that brand name pair of shoes, but you only have a finite amount of dollars to spend. Just for fun, you can also teach them about budgeting. When teaching your pre-teen how to budget their money, show them how they can set aside a certain percentage on splurging. The rest of the money goes into other categories of the budget, such as bills and savings. If your preteen puts aside a certain amount for entertainment purposes, they will learn that when that dollar amount is gone, it’s time to reach into the free bag for fun!
Saving is truly a fun part to teach when it comes to teaching your preteen about money. Saving money should be looked at as a reward and not a punishment. As a child sees their money slowly build up, they will understand the long-term benefits of saving those dollars. Of course, the attitude you show towards saving money will likely be the attitude your child adopts as well. Make the “saving” part of money a positive one!
You see, teaching your preteen about money is a lot easier than it might seem. Start teaching your child early in life: teaching them about paying bills, spending, and saving isn’t something that’s too far above their head as long as you do it in a simpler way that applies to their current life.
Teaching your child about SPENDING, SAVING, and PAYING right now is smart and will pay off in their future. With your diligent hands-on teaching, your preteen is bound to continue making great money decisions as they grow through life.
Wasn’t that fun?
Wait until next week when I talk about teaching your college bound “teen” about money. This time, it gets a little more real as they prepare to move in to the real world in the next few years, even paying their own bills. Financial responsibility needs to become very real to that teen you share your vehicle with!