Teach Your Teens About Money: Don’t Lecture, Lead by Example
My favorite bank, USAA, conducted a teen survey called High School Confidential. The survey revealed that teens learn money management skills from what their parents DO, not what they SAY. *shock* Oh, really!? Some of the other survey results might surprise you:
What Teens Said
86% say parents are more helpful than other sources in teaching them about money.
79% of teens wish they knew more about finances.
50% say their parents discuss spending and saving “all the time” or “fairly often.”
49% believe parents share little to nothing about the family’s finances.
41% say their parents regularly fight about money.
61% say they will become millionaires in their 40s or younger.
21% expect to earn $60,000 or more at their first full-time job.
What Parents Said
49% of parents confess that their money management skills range from “OK” to “terrible.”
73% say they discuss finances often.
63% say they reveal information about their own finances with teens “a lot” or a “decent amount.”
13% of parents confess that they either spend money as fast as they can get it or are almost always broke.
23% expect to rely “a decent amount” or “a little” on their child for money when they get older.
The stats are a bit disturbing. Almost half of the teens said their parents fight about money and many of them expect to earn $60k+ with their first jobs. Wow! Even worse, nearly half of their parents lack confidence in their own money management skills and almost a quarter of them will rely on their children for money when they’re older.
Additionally, 79% of teens wish they knew more about finances and 73% of their parents say they talk about it often. Huh? Can you say major disconnect? This further proves the old adage, action speaks louder than words. From my experience with raising a teen, I’ve learned that lectures fall on deaf ears. However, when I lead by example, BabyGirl is more interested in what I’m doing, she gains a better understanding of the message I’m trying to convey, and she’s more likely to remember and apply the lessons to her own life.
Fabulous Tip: With every decision, your children are watching and learning. If you don’t want them to repeat your money management mistakes, change starts with YOU. Avoid the lectures, make better financial choices and lead by example.
[image credit: jupiterimages.com]
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I just asked my 13 year old if she believed she would make over $60K her first full-time job. She responded with “uhmm I was thinkinging somewhere between 10K and 25K but that is okay since my priorities wont be the same as you. You have kids. I had BETTER not have any kids before I have my first time job” It really opened a discussion about being realistic and working your way up from the bottom as well as the impact of planning poorly based on unrealistic expectation
I think that integrity is the most important aspect of teaching kids about money. I will be returning a comforter set I just bought because I told my 9 year old that we didn’t have money in the budget to redo her room until 2009. So where did the money come from for my bedroom? I have to wait just like she does.
We had a lot of money discussions this past Christmas after my 3 nieces received iPod Nanos ($600+tax), and my 2 girls received non-iPod MP3 players that cost $160+tax after rebates. My oldest niece (13) had no idea that her gift cost $200–that’s just sad! If she were my child, she wouldn’t have received an iPod because she lost her mother’s cell phone, which cost $200 to replace.
We are trying to model good choices. Hopefully they’ll appreciate my husband and me when they’re older!
It has always seemed to me that one of the greatest things that happened to me was that my parents gave me an allowance when I was a kid. It was small but I learned a lot from that about how to manage my money.