Talking to Your Teens About Money
Written by Anita Saulite
Friday, January 10th, 2020
Today's teenagers, overall, are tech savvy, entrepreneurial and are global citizens.
According to a study conducted by McKinsey, they're "the first generation of true digital natives," which means they've grown up online, giving them unlimited access to financial information and advice.
Most parents would agree that it would be great to talk to their teens about money, because they want them to become confident managing money and to be set up for success. But it may be challenging to find the right words or know how to start the conversation.
Getting your teen to listen isn't an easy task at the best of times.
Start the Conversation by Learning More About Your Teen's Goals
Engaging in conversation about money doesn't necessarily have to start with topics such as investing, saving, or spending. Most teenagers (and even adults) are uncomfortable talking about money.
With this in mind, the best way to start a conversation about money is not to lead with it. Connect with your teen about what matters to them the most: their life, goals, dreams and aspirations. You may be surprised by how receptive they are to this approach and how much they open up to you.
You can begin by casually asking your teen about whether they've given thought to their future, or thoughts about life after high school. See where the conversation goes. Find out if your teen has some very specific goals in mind. Goals can be short-term or long-term. For a teen, short-term goals are generally 6-12 months. Long-term goals could be something further down the line, like higher education or travelling.
Encourage your teen to create a personal roadmap to achieve their goals. It can then lead to the financial implications.
Help Your Teen Make Trade-Offs
According to a recent story by Inc, today's teenagers have enormous spending power, from either working part-time or receiving allowances/gifts. They're typically debt-averse and understand that post-secondary education is expensive.
They typically also understand trade-offs, and it's important they learn to make the connection between buying things and saving for their goals. For example, if your teen wants to buy a new pair of sneakers, you can help them see that using money to buy them now means trading off saving that money for longer-term goals.
Encourage Your Teenager to Live by their Values
When talking to your teen about money, you may also want to find out more about what they value. Many are socially minded and care about what's happening in the world. They value friendships. Teens today want to make this world more sustainable and are actively engaged in volunteering and making their communities better places to live. Many are looking to find greater purpose and meaning in life, and this has relatively little to do with money.
If you want to talk to your teen about money, it's best to start with learning more about what they value and their personal goals. Connect with your teen on a personal or deeper level, and they'll eventually start talking about money with you, too.
This article or video (the “Content”), as applicable, is provided by independent third parties that are not affiliated with Tangerine Bank or any of its affiliates. Tangerine Bank and its affiliates neither endorse or approve nor are liable for any third party Content, or investment or financial loss arising from any use of such Content....
The Content is provided for general information and educational purposes only, is not intended to be relied upon as, or provide, personal financial, tax or investment advice and does not take into account the specific objectives, personal, financial, legal or tax situation, or particular circumstances and needs of any specific person. No information contained in the Content constitutes, or should be construed as, a recommendation, offer or solicitation by Tangerine to buy, hold or sell any security, financial product or instrument discussed therein or to follow any particular investment or financial strategy. In making your financial and investment decisions, you will consult with and rely upon your own advisors and will seek your own professional advice regarding the appropriateness of implementing strategies before taking action. Any information, data, opinions, views, advice, recommendations or other content provided by any third party are solely those of such third party and not of Tangerine Bank or its affiliates, and Tangerine Bank and its affiliates accept no liability in respect thereof and do not guarantee the accuracy or reliability of any information in the third party Content. Any information contained in the Content, including information related to interest rates, market conditions, tax rules, and other investment factors, is subject to change without notice, and neither Tangerine Bank nor its affiliates are responsible for updating this information.
Tangerine Investment Funds are managed by Tangerine Investment Management Inc. and are only available by opening an Investment Fund Account with Tangerine Investment Funds Limited. These firms are wholly owned subsidiaries of Tangerine Bank. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.