Top tips to instil good financial habits in your teens

New research from M&S Money suggests that some teens (14-18 year olds) are not being given basic help on money matters by their parents.

Some of the statistics from the research include:

  • Almost 20% of parents have never even discussed how they spend their money with their teens
  • 47% have yet to help their child open a current account
  • 32% have still to discuss how to budget or even describe what one is with their child

To help parents, M&S Money has compiled 5 tips on how to teach your teen about money:

  1. Make teens responsible for their own expenditure – provide them with an allowance and clearly outline how you expect them to be responsible for their bills in the future.
  2. Talk your teen through the household budget – explain the bills you need to pay and how you budget for them.
  3. Be honest about your financial mistakes – make sure your children understand what mistakes you made so that they can learn from them.
  4. Explain the difference between good and bad debt – as your child grows, they will be offered credit cards, store cards and overdrafts which, if used sensibly, can be useful but if abused, can cause real problems.
  5. Help them set up a savings and current account – allowing them to manage their finances from an early age.

 

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