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Teens plan to rely on parents: Fitting money lessons into your work life balance

Money

 

Have you ever been so busy and distracted that your teen asks you for money and you hand over a few bucks just to get them out of your hair?

I'm 100 percent guilty of this.

But that's about to change. I just saw a statistic that startled me: Nearly 60 percent of teens said they don't expect to be ready to financially support themselves by age 24 -- a far cry from the same survey by Junior Achievement two years ago, when 75 percent of teens felt the same.

Am I one of those parents who hasn't been making enough time to teach my kids to be financially responsible? Are you?

 

"Parents continue to be the No.1 influence on teens when it comes to money, so helping their teens set financial goals and take steps to meet them should pay off financially for both teens and their parents," said Don Civgin, president and chief executive officer of Allstate Financial.

AOL poses this question: Whose job is it to teach kids how to manage money -- teachers or parents?
 
For a while now, I've been on a rampage, arguing that high schools should require a mandatory class on personal finance. It may be the most important skill a teen learns and I can't understand why schools aren't teaching it. But the reality is, they aren't teaching it and even if they did, it likely will take both teachers and parents to put budgeting and managing money on our teens radars. 
 
April is financial literacy month and it is a good time for you and me to make time for money lessons. 
Here are the five financial lessons experts suggest we take the time to teach our teens before they head off into the world on their own. 

 

 

1. Credit. Teens need to know what it is, what responsibilities come with it, and how credit can increase cash flow but has to be paid back … with interest. (click here for more on how to teach your children about credit)

2. Credit Score. You will need to explain what it is and how the car you drive, the house you live in and the job  you have can all be affected by your credit score

3.  Loans. Explain good versus bad credit by pointing out important entries that have helped you establish a financial identity, such as your  mortgage or car loan.

4. Spending habits. Your kids “are going to be learning by watching you,”  says Sarah, founder of RaisingCEOKids.com and co-author of “The Parents’ Guide to Raising CEO Kids. Use teachable moments to explain why you make certain spending decisions and the consequences of your spending mistakes.

5. Savings. Now that your child is a teenager, you will want to show them how to open a savings account. While your teen may be enthused about earning money from work, you also have to teach him or her not to spend it all, an important lesson in financial management. This will take a bank visit together. You will need to consider fees and requirements, location of the bank, and amount of interest paid on a savings account.

 

I often hear parents say it's  hard to choose between financial security and a decent work life balance. If we teach our kids good money management at an early age, I'm hoping some of those choices we parents confront will be less of an issue for our kids in the future.   

Readers, do you think parents are taking enough time to teach our kids about personal finance? If not, do you think the schools should step in and do it?

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