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:
- 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.
- Talk your teen through the household budget – explain the bills you need to pay and how you budget for them.
- Be honest about your financial mistakes – make sure your children understand what mistakes you made so that they can learn from them.
- 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.
- Help them set up a savings and current account – allowing them to manage their finances from an early age.