When it comes to raising financially smart kids, what our kids see us do is a lot more important than what we tell them to do, according to a new Cambridge University study. Two-time New York Times bestselling author and financial security expert Pamela Yellen with tips to raise financially savvy teens.
Pamela’s Bank On Yourself blog has been named one of the Top 100 Personal Finance Blogs on the web by Feedspot. Here are some of her thoughts on raising money smart teens from her groundbreaking Your Money Revolution money mastery program
“Beginning your child’s financial education in their teen years has challenges you need to be aware of,” she says. “By now, it may have occurred to you that some of the ways you’ve handled money with your kids haven’t been the healthiest. Perhaps you gave them allowances with no requirement to do chores.
“Maybe you rescued them from financial missteps or didn’t allow them to make even the smallest of decisions on their own regarding money. Well, you didn’t know what you didn’t know, but now that you know, it’s time to change course. Make the commitment to change those counter-productive patterns, and explain to your teen (probably over their loud protests!) why you’re doing so.”
Another challenge is getting past the inevitable communication issues with teens. “Good communication with teens is almost an oxymoron! They’re frustrated with their parents, and typically, their parents are frustrated with them. ‘Because I say so!’ is no longer an effective explanation, and they’re no longer the compliant eight-year-olds you once knew.”
Pamela can share detailed lessons on her eight key money lessons for teens:
- More money autonomy.
- Getting their first job.
- Preparing to live on their own.
- Buying a car.
- Becoming smart shoppers.
- Credit and credit cards.
- Paying for college.
- Building a “Plan B” fund.
“Teens not only need skills in dealing with money, they desperately want these skills,” Pamela says. “Connect what you teach them to WII-FM: ‘What’s in it for me?’ Use the things they want, such as a car, a college education, a place of their own, as valuable financial lessons in areas like comparison shopping, estimating costs, delayed gratification, and saving toward a goal. Help set your teen up for future success by letting them make smaller money mistakes now. Let them flex their money muscles with checking accounts, prepaid debit cards, and the responsibility for covering some of their own necessities.”
About the Author: Pamela Yellen is a financial investigator and the author of two New York Times best-selling books, including her latest, “The Bank on Yourself Revolution: Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future.” Pamela investigated more than 450 financial strategies seeking an alternative to the risk and volatility of stocks and other investments, which led her to a time-tested, predictable method of growing wealth now used by more than 500,000 Americans.
For more information visit www.BankOnYourself.com.