Most of us know that our teens need to be saving their money. And many of us have absolutely no idea how to go about making that happen… Some parents force their kids to save and others make no such requirements. I’m going into this not really sure where I stand, to be perfectly honest. Eva wants to save her money, so I guess that I have it easy in that regard. However, some of us may have kids who don’t think saving is important. Today we are going to look at some of the reasons why you should require your kids to save and we will look at the reasons why you shouldn’t force the issue another time.
If you don’t teach your child how to save a portion of their earnings – who will? Parents are the key to making sure that teens are equipped to make sound financial choices, and it starts by teaching them to save from a very early age. Parents who simply hand over money to a teen for spending alone are making a big mistake.
No One Taught Me
Some parents say that they are requiring their teens to save because no one ever bothered to teach them, and they have suffered the consequences personally. What our parents did or did not do with us deeply influences the choices we make for our own families. Many adults regret not having been required to save a portion of their earnings and believe the lack of education led to financial mistakes that they continue to pay the price for even years later.
Teens can be immature when it comes to managing money. They may be prone to spending all of their money as soon as they get it – or only saving up for things like the latest, greatest video game system. And really…how many new outfits does a teen truly need? Because of this many adults believe that it is negligent not to make them save some of their earnings. Their teenager may not like it, but will thank them for it later, hopefully!
If a parent demands that a teen save money, the teen will have a greater chance at financial independence earlier in life. Although they may have to forgo a trip to Starbucks or the theater occasionally the reward far outweighs the inconvenience. A teen does not have to believe in a savings plan in order to reap the benefits of money saved in the future.
I’m sure there are many other benefits to requiring a teenager to save their money. Do you make your children save? If so, how is that going? Do they resent the requirement or do they see the wisdom in it even now?
Next time we will look at the arguments against forcing a teen to save money that they have earned themselves and try to make some sense of it all.