How To Start Your Child on the Road to Financial Responsibility (It’s Easier Than You Think)
- Filed under: financial literacy for teens, gen z. credit card debt, money management, wealth building
A 2019 survey done by Junior Achievement USA and Citizen’s Bank found that more than a third of American teenagers did not think that they would be financially independent of their parents by the time they were 30.
That’s a sobering thought if you’re a parent.
It’s not that we won’t always be there for our kids. Of course, we will. But we want them to be financially healthy, responsible adults that can fly the nest when the time comes — and traditionally, that time has come well before they’re 30.
So what’s changed?
Americans, in general, are struggling financially.
- Almost 56% say they are unable to cover an unexpected $1,000 bill out of personal savings.
- Only 23% say that they are not in debt.
- A 2020 study found that the average American carries $92,727 in consumer debt.
- One in four adults has no retirement savings.
We’ll be launching our children into this reality at a time when they’ll be having to make critical decisions about things like student loan debt and credit card use. Will they have the skills to navigate this financial minefield?
Wealth Building Is Not Just for the Rich
My own personal experience with debt as a young adult, and that of many people I know, left me feeling that young people are often not adequately prepared for the financial decisions they will have to make.
They haven’t learned or thought enough about what they’ll be earning, and how to budget, spend and save. Adolescent brain development makes it difficult for them to realize the full implications of the decisions they’re making now and how they will impact them in the future.
They’ll be facing expenses like rent and groceries and other costs of living. Maybe a car and insurance, or other transportation expenses. They may face decisions about whether to incur student loan debt or already have the responsibility of making payments on it.
This increase in financial responsibility and decision-making usually coincides with a time of unprecedented independence for them. Maybe they’ll move out into an apartment. Maybe they’ll still be living at home, but with greater freedom given their status as young adults. They’ll likely have a lot of ideas about how they want to spend their money.
We Built a Financial Literacy Course So You Don’t Have To
By giving them the information and tools they’ll need to make healthy financial choices and develop strong money management habits, you’re giving them a greater chance at success.
Wealth Building Academy for Teens teaches the financial literacy skills they will need. Whether you’ve given them the basics and want that reinforced and expanded upon, or you’re not even sure where to start, we’ve got you covered.
It is an easily-followed self-directed curriculum with four modules: Earning, Budgeting, Saving, and Spending. They can be used individually, or accessed as a bundle for a complete education at savings.
In Earn Your Way to a Brighter Future, students will learn
- money-making skills
- how to find jobs in their communities
- the benefit of multiple streams of income
- teen entrepreneurship through small business ideas
In Budget Your Way to Success, they will learn
- the benefits of having a budget
- how to create a budget
- how to manage their finances through budget projection
- the differences between fixed and variable expenses
- what to do when they find themselves overspending
In Pay Yourself FIRST, students will learn
- how to set SMART goals
- the ‘pay yourself first’ strategy
- the difference between saving and investing
- what inflation is and how it affects us
In Responsible Spending, they will learn
- how to identify the difference between needs and wants
- The difference between good debt and bad debt
- how to recognize the negative spending habits that lead to bad debt
- the importance of a positive money mindset
- how to use a credit card responsibly
- the importance of a good credit score
- how to avoid bad debt
Worrying about our kids’ financial futures is just part of our job. But so is equipping them to deal with the challenges that come up along the way. Wealth Building Academy for Teens provides parents with an easy and affordable way to do that.
In building their financial literacy, we’re giving them a roadmap to a more secure future — and giving ourselves fewer sleepless nights.
Enroll in the course today.
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Wealth Building Teens become Financially Secure Adults with Our Easy Courses!
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One Response
This is so important! Like a lot of people, I had to figure this out on my own as a young adult. I would have made far fewer missteps if I’d had this information as a teen!