Money 101 for High School Students
If you have high school students in your family, the tips I’m sharing with you today will save them (and you) a lot of grief and headaches in life.
You see, just like me and you, high school student don’t get a thorough education on personal finances. Even though it should be required for everyone.
So the next time you sit down with your high school student, be sure to tell them about these basic but monumentally important money tips:
Tip #1: It’s not about trying to keep up with “the Joneses.”
High school students interact with young adults who come from different families of different financial backgrounds. Just because they see Paul parking his new BMW in the school parking lot, does not mean your child needs a BMW. Let them know the time for luxuries and spending big money on big things comes once they are adults, and understand the value of money.
Tip #2: Make your money matter now.
The time to build sound money habits is now. When your teens respect money, it will respect them for the rest of their lives. If they squander money now, they are in for a rough ride. (Which means they’ll be coming to you when they need a loan!)
Tip #3: Learn what a budget is now, not later.
Budgets are one of those things that some people love, but many people hate. Teens who can stick to a budget are getting the best education they can get, about living within their means. Teens who ignore budgets go on to be adults who live with debt, bankruptcy and financial stress.
Tip #4: Get them into the habit of having money in the bank.
The fact is, people who don’t save when they are young adults find it very difficult to save later on in life. Make your high school student open a savings account today. And encourage them to add to it every month. Also be sure to monitor their progress, so you can make sure they develop the habit of saving.
Tip #5: Money In, Money Out and Credit.
When your high school student knows how much money they have coming in, and how much going out every month, they can more easily live within their means. Be very careful with them having credit cards, unless they have a low available credit, so they get into the habit of using credit wisely, and paying off balances. Teach them that if they don’t have the money coming in, they shouldn’t be spending, and shouldn’t use a credit card like “free money.”
Educating your high school students now on these important aspects of personal finance will ensure you don’t have to rescue them from financial troubles later, when they are adults on their own.