teaching teens – Tim Connolly

Teaching Teens About Money: Why Your High Schooler Should Start Investing Now

Posted on December 14, 2023 by Tim Connolly

Introducing teens to the world of investing at an early age can be a powerful educational tool with long-lasting benefits. While high school may seem too early to delve into investing, the advantages of starting early are numerous and can impart valuable financial lessons that last a lifetime.

Firstly, investing early instills the importance of long-term financial planning. By introducing high schoolers to concepts like compound interest and the power of time in the market, they can witness firsthand how their money can grow exponentially over the years. This early exposure helps them develop a patient and strategic approach to wealth-building, fostering a mindset that values sustained, long-term growth over quick financial gains.

Moreover, teaching teens about investing provides a hands-on lesson in risk management. While investments inherently carry risks, navigating these risks can teach valuable lessons about making informed decisions and understanding the market’s unpredictable nature. This early education equips teens with financial resilience and the ability to adapt to changing economic conditions, essential skills for their future financial well-being.

Additionally, introducing teens to the world of investing fosters financial literacy. Many adults lament a lack of financial education during their formative years, and empowering high schoolers with the knowledge to make informed investment choices addresses this gap. Understanding financial markets, investment vehicles, and the basics of portfolio management prepares them for a future where financial decisions are an integral part of their lives.

Teens can also learn critical life skills through investing, such as research, analysis, and decision-making. Researching potential investments requires understanding market trends, company performance, and economic indicators. Analyzing this information and making informed decisions cultivate critical thinking and problem-solving skills. These skills extend beyond the realm of finance, contributing to a teenager’s overall intellectual and analytical development.

Furthermore, investing teaches teens about goal-setting and discipline. Whether saving for future education, a car, or their first home, setting financial goals and working towards them through disciplined investing imparts valuable lessons in perseverance and delayed gratification. These qualities are not only beneficial in the financial realm but also translate into other aspects of their lives, including academics and personal development.

Teaching teens about money also encourages a sense of responsibility and ownership over their financial future. Understanding how to manage money, make informed investment decisions, and navigate financial markets empowers teens to take control of their economic destinies. This sense of financial responsibility lays the foundation for a more secure and confident approach to money matters as they transition into adulthood.

Lastly, starting early with investing allows teens to recover from potential setbacks. The stock market, while historically providing solid returns over the long term, can experience short-term fluctuations. By beginning their investment journey in high school, teens have more time to recover from market downturns and learn valuable lessons about resilience and patience without jeopardizing critical financial goals.

In conclusion, introducing high schoolers to investing offers a myriad of benefits that extend far beyond financial gains. From instilling a long-term mindset and risk management skills to fostering financial literacy and critical thinking, the lessons learned through investing are invaluable. By equipping teens with the knowledge and skills to navigate the financial landscape, we empower them to make informed decisions, cultivate discipline, and take control of their financial destinies from an early age.

Teaching Teens the Value of Money: Practical Tips for Parents

Posted on November 10, 2023 by Tim Connolly

Teaching teens about money is a crucial aspect of their financial education and overall development. By instilling good money habits and financial awareness early on, parents can help their teens become financially responsible and independent individuals. Here are some practical tips for parents to impart valuable lessons about money to their teenagers:

Lead by Example: Parents are the primary role models for their children. Demonstrating responsible money management and financial decision-making is one of the most effective ways to teach teens about the value of money. Discuss your own financial choices and experiences with them, so they can learn from real-life examples.

Start Early: Teaching the value of money should begin at an early age. Encourage your children to save a portion of their allowance or earnings, whether through chores or part-time jobs. This helps them understand the concept of saving and delayed gratification.

Open a Bank Account: Help your teenager open a savings account at a bank or credit union. This not only provides a safe place for their money but also introduces them to the banking system and the concept of earning interest.

Allowance and Budgeting: Provide your teen with an allowance that requires budgeting. Have them allocate their allowance for different purposes, such as saving, spending, and giving. This helps them understand how to prioritize and manage their resources.

Teach Wise Spending: Encourage your teenager to think critically about their spending choices. Discuss the difference between needs and wants, and the consequences of impulsive spending. Help them set financial goals, such as saving for a specific item or event.

Involve Them in Family Finances: Include your teenager in discussions about family finances, such as budgeting, bills, and expenses. This will give them insights into the practical aspects of managing money and an appreciation for the family’s financial situation.

Use Real-Life Scenarios: When shopping or making financial decisions, involve your teenager in the process. Compare prices, look for discounts, and discuss the factors that influence your choices. This hands-on experience will teach them valuable money-saving skills.

Encourage Savings: Emphasize the importance of saving for the future. Discuss various savings options, like setting up an emergency fund, saving for college, or investing for retirement. Show them the benefits of compound interest and how their savings can grow over time.

Introduce Earning Opportunities: Encourage your teen to take on part-time jobs or engage in entrepreneurial activities like babysitting, lawn mowing, or selling handmade crafts. Earning their own money can instill a strong work ethic and a sense of financial independence.

Allow Mistakes: It’s essential to let your teenager make their own financial decisions, even if it means making mistakes. Mistakes can be valuable learning experiences, teaching them the consequences of poor money management.

Discuss Credit and Debt: Introduce the concept of credit, loans, and debt. Explain the importance of responsible credit card use and the risks associated with excessive debt. Teach them about credit scores and how they can affect financial opportunities in the future.

Philanthropy and Giving: Encourage your teenager to engage in charitable activities or donate a portion of their money to a cause they care about. Teaching them about giving back fosters empathy and an understanding of the broader social impact of financial decisions.

In conclusion, teaching teenagers the value of money is a vital aspect of their overall education and life skills. By incorporating these practical tips into your parenting approach, you can help your teenagers become financially responsible, informed, and prepared for a successful financial future. The knowledge and skills they gain during their formative years will serve them well throughout their lives, promoting financial well-being and independence.

teaching teens

5 Money Tips Every Teen Should Know

Posted on July 22, 2022 by Tim Connolly

As a teenager, you may even be living at home. But as adultness approaches, it’s necessary to ensure you have the economic know-how you’ll need to avoid costly mistakes when it comes to handling your own money.

As you start to get financial independence, such as working your first job and qualifying to live on your own, you should seek out ways and tools that will improve your money management skills before you learn these lessons the difficult way.

Here are five money tips for teaching teens about money and joining adulthood with a good financial head on your shoulders.

Set up checking and savings accounts while you’re still living at home

Don’t wait until you’re living on your own to specify accounts with a local bank. Set up a checking and savings account and understand the basic functions of these accounts, such as script checks, creating debit charges, and analyzing online bill pay and other key elements.

Opening checking and savings accounts can help you to establish a connection with a local financial institution, while also enlightening yourself with two of the most meaningful financial tools you will ever use.

Utilize money management apps to set budgets and track spending

Money management apps are an incredible help to help you follow your income, set spending budgets, and determine trends in your spending behavior.

With these money management apps, you can practice money management and track your progress over time.

Find simple ways to start building credit

Opening a checking or savings account is fantastic for creating a financial history. But these accounts don’t permit you to build credit. There are other steps you need to take to start building a positive reputation that contributes to a more elevated credit score—which will come in handy when it’s time to take out student loans or finance a car purchase.

The first step is to make on-time payments for any invoices you may have, such as your cell phone, if your plan is distinct from your parents’. If you’ve invested in a car purchase with your parent as a co-signer, creating regular payments can help you build a substantial credit history.

Another easy way to build credit is to open a starter credit card that has a low spending limit. Credit card fees and interest can stack up quickly, so ensure you keep an eye on your spending. One way to avoid stressing about overspending is to only use your credit card for one or two spending classes per month, such as getting gas. It’s also good to set up automated payments to confirm your balance is paid off in full every month.

Take benefit of digital tools that help you save gradually

Comparable to money management apps, you have many different options when it comes to investing platforms and other savings tools that leverage technology to assemble toward savings goals.

Educate yourself on the risks of taking out debt.

As you look forward to your college years and adult life, it’s essential to be aware of the risks of using credit cards and student loan obligations to fund your lifestyle. These financial tools make it easy to spend finance carefree at the moment, but if you are not careful, you could explore a deep money gap that takes years to rise out of—and accrue considerable interest along the way.

Conclusion

Be sure your teenager understands how you earn money. Involve them in tracking spending and calculating the percentage of your loved one’s take-home income that goes to rent or mortgage. Knowing to budget now will help them manage to spend when they are on their own.

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Teaching teens about money management

Posted on May 10, 2022 by Tim Connolly

As teenagers become more independent and begin to earn money, it’s important to set them up with a good foundation of knowledge in money management.

Here are a few of the key things to focus on so they can get a better understanding of how to earn, spend and save money from early on:

Hand over responsibility

At some point your children will need their own bank account. If they’re earning pocket money, it may be worthwhile opening a bank account with them before they reach their teenage years. Once your teen turns 14, they’ll be able to operate their account on their own. This includes the ability to remove any parent or guardian access.

No matter what age they are when you open it, giving your child responsibility over a bank account is an important first step. It will help them learn things like depositing money, checking their balance online, updating their contact details when needed and using an ATM.

Build a budget

Whether it’s through pocket money, a part-time job or a little bit of both, a budget will help you set some parameters around how the money coming in should be used, without having to constantly check what they’re spending their money on.

Take your teenager through a budget planner, setting amounts of money for spending on clothes, food and other things, and also money to be saved and even some money for charity.

Pay themselves first

If they’re wanting to build their savings, one of the best pieces of advice for your teen is to pay themselves first. This means having a separate savings account which earns interest, then when they’re paid, making sure they put away the saving amount allocated in their budget before doing anything else.

The longer money is in their transaction account, the more temptation there is to spend it. Having a separate savings account which is paid immediately can help reinforce the idea of money for spending and money for saving.

Equate money and time

Responsible spending is easy to talk about – you can talk about how some things may be necessary while others aren’t, and also how some items will be short-lived while others will last longer. But it can be hard to get comments like this to have any lasting effect on your increasingly independent teenager.

A more compelling way to think about the value of money is to combine it with the concept of time. For example, if they want to buy a pair of jeans, get them to work out how many hours in their casual job that equates to. Once they find out how many hours of hard work they need to do, it may change their view on whether it’s worth it.

Chat about credit

If they’re in their early teens, it’s most likely too early to think about a credit card, but the discussion will come up at some point. When it does, it’s important to make sure that they understand that credit is not free money. While a credit card may be suitable in some circumstances, they need to be wary of debt, even if it is for a short term.

Set the right example

One of the most powerful ways for teaching teens about money is by setting a good example for them to follow. If you use a budget, save money regularly, and are open about this with them, this will have a big impact on their understanding of how to manage money from an early age.

Teach Teens, teaching teens, Teaching Teens About Money

How to Teach Financial Literacy to a Teenager

Posted on May 10, 2022 by Tim Connolly

I think it hits you that your child is growing older when someone asks you how old she is, and when you share her age, they respond, “Wow! She’s in high school!!”

As a parent, you know there are certain skills you want your child to develop before they go off to college. Yes, those practical life skills and the most important one from them is teaching teens about money.

What is considered a life skill?

A life skill is any skill that is needed to manage the challenges and activities of every day, effectively.

HOW TO TEACH FINANCIAL LITERACY TO A TEENAGER

If your teen remembers these principles, she will be on the road to developing a sound money management habit.

It begins with budgeting and segmenting the money she receives every month.

Encourage her to start doing this even before she starts earning her own money. Practice with her pocket money.

Discuss together what percentages will work best while budgeting for the month.

1. SET ASIDE MONEY TO SAVE.

This is money that should not be touched, no matter what. Money that will be saved for college. Or later on in life, for a car, a house. All those important, big investments. If your teen is like my book lover, you will need to remind her that books, though great, are not considered an important investment.

2. SET ASIDE MONEY FOR EXPENSES

There are monthly expenses that are set but then there are expenses that crop up unannounced.

Set apart an amount that includes the required monthly expenses and a buffer for those unexpected incidentals. Encourage your teen to always document every expense, irrespective of how tiny it may be.

There are hundreds of free apps out there, but nothing beats pen and paper.

3. SET ASIDE MONEY TO INVEST

Investing money in stocks and shares is a popular choice, but it does not come without a great amount of risk.

With a minimum investment of only $500 and no management fees, DiversyFund makes it possible for you to diversify your portfolio with one of the most proven profitable forms of alternative asset investment: multifamily commercial real estate.

This trust consists of high-potential real estate projects and properties carefully picked by a team of real estate investors. This team manages, renovates, and sells them to turn a profit. These profits are then shared with the investors in the trusts, which in this case, would be your child (or possibly you.) You could consider DiversyFund if your teen isn’t 18 yet.

4. SET ASIDE MONEY TO GIVE

We’re teaching our kids to tithe 10% of our income, before expenses, to give to our local church. For your family, this may look different. This could include giving to a charity of choice or setting apart money to pour back into the local community.

Teach Teens, teaching teens

Financial Literacy for Teens: Learning the Basics

Posted on May 5, 2022 by Tim Connolly

The United States may be one of the richest nations in the world, but only a little over half of U.S. adults are considered financially literate.

Few states have mandatory classes in personal finances for high school students, which means it’s often up to parents to teach teens about money and to give them a good foundation for financial literacy. Here are some pointers about financial literacy for teens to help prepare for financial independence.

Understanding how bank accounts work

If you’re a teenager who doesn’t have a bank account yet, talk to your parents about opening one and using it as a tool for discussing personal finances. Teens should understand that a bank account is more than just a place to store money.

There are often fees for using the account and, in the case of a savings account, interest paid to the account holder. A bank account can also lead towards getting a secured credit card once there’s a sufficient account balance.

Understanding compound interest

Having a good grasp of compound interest is fundamental to financial literacy, yet one third of adults in the United States have a poor understanding of it. Simply put, whether you’re talking about a savings account or a credit card, when interest is applied to money, that interest will also have interest applied to it. Over time, the value of the money can grow exponentially.

However, compound interest also applies to debt. If you owe money on a credit card, for example, the compound interest applied to what you owe can quickly exceed the amount you originally borrowed.

Understanding why credit scores are important

Any high school student who has taken an exam or brought a report card home realizes that our society uses scores to measure merit. So even if you don’t benefit from having a good credit score today, you can understand it will be important in the future when you want to buy a house or a car.

Every time you borrow money, the lender records how well you have paid it back, which counts toward your credit score. When you want to borrow more money, the lender will look at your credit score to help decide whether you’re a risk worth taking. The lender can also use your score to determine how much interest to charge you.

Learning how to balance a limited budget

Sooner or later, everyone learns to live within their means. As a teen, learning to live within a limited budget now can avoid the transition that often accompanies going out into the world. A good way to do this is to create a budget from an allowance or summer job.

If you don’t have a source of income yet, ask your parents about giving an allowance for specific items, like clothing and cell phone bills, rather than paying for those items themselves. Using a budget will teach you that any purchase, such as a new phone, will most likely require a sacrifice in other spending to make up for it.

Learning how to pay yourself first

The importance of saving money for the future is a lesson that will pay off for decades to come. If you have an allowance or a part-time job, talk to your parents about starting a savings account specifically for saving towards a long-term goal, like going to college or buying a first car.

Then, at each payday, put a percentage of that money into the account. Your parents might even consider illustrating that saving money makes money by matching any contributions you make to that savings account.

Regardless of how you approach the topic of personal finance, discuss any decisions or issues with your parents first before making financial decisions.

Teach Teens, teaching teens

5 Common-Sense Money Management Tips for Teens

Posted on May 5, 2022 by Tim Connolly

A successful financial future is easiest to build on a strong foundation. If you have a child in their teens or pre-teens, try these five common-sense tips for providing financial education to kids to set them up for success.

How to Help Your Child Manage Their Money as a Teenager

1. Open a savings account sooner rather than later.

Encourage your teenager to open a savings account if they don’t already have one. This is especially useful if they have a part-time job. That way, they’ll have a safe place to store their newfound income and earn interest while they’re at it.

When opening a banking account as a teen, they may need someone over 18 to be on the account with them, so it’s the perfect opportunity to take them to the bank and help them through the process.

First, though, discuss with them how much they’d like to put in their savings account. Look at the minimum deposit amount at your bank of choice and then go from there.

2. Open a checking account to get a debit card.

A debit card is sort of like a credit card with training wheels. It’s a good way for your teen to practice handling virtual money. Once they’re experienced with spending money with a card instead of cash, they’ll be much better prepared for when they get a credit card after age 18.

Most banks offer debit cards with checking accounts these days. Have them open a checking account to start practicing using a card, as well as managing their accounts online.

3. Create a simple budget.

Budgets are only as complex as you make them. As a teen, your child will likely not have many monthly expenses and a relatively uncomplicated source of income. This is the perfect time to sit down with them and create a budget together.

When creating a simple, realistic budget with your child, start by totaling income sources such as allowance or part-time job wages. If they make extra money doing things like babysitting or refereeing on the weekend, be sure to account for that. Then, have them subtract from that their monthly expenses—including contributions to a savings account and miscellaneous spending money.

4. Give them online resources to explore on their own.

Some teens prefer to learn things on their own rather than from their parents. Luckily, there’s a whole world of reliable online resources to help them learn about money management.

We also have a resource for you, their parent or guardian. Money, as You Grow from the Consumer Financial Protection Bureau, has tips to help you teach your teens everything they need to know.

It can be narrowed down by topic, like buying a car or paying for college, and has sample questions and answers you can use when explaining things to your teen.

5. Sort out wants from needs.

Here’s one last tip for setting your teen up for long-term financial health. It’s a simple one—have them make a list of their wants and their needs.

It’s such a crucial step to money management, but often it can be overlooked by young teens in the excitement surrounding their first paycheck. Before they spend it, have them make a list of things they want versus what they need, then compare that to their budget. This way, they’re more likely to come to their own conclusions that perhaps certain “needs” are actually “wants” when they see their paycheck start to shrink.

teaching teens, Teaching Teens About Money

Teen Money: A Guide for Teaching Teens Money Management

Posted on May 5, 2022 by Tim Connolly

One of the best life lessons parents can give is teaching teens about money. So many of us grow up without having an idea about how to make the most of our checking account, how to save for attainable goals, or how to budget and consider taxes.

Teaching your teens how to manage money from an early age can prove to be hugely beneficial.

But what should you do if you notice that your teens seem to be a bit more flush with cash than they should be?

Is your teen obsessed with the idea of making and getting more money?

Have you or others started to notice that money or items are now missing from your wallet or home?

Establishing good money habits as a teen

With a solid financial foundation, your teen will be in an excellent position to approach adulthood with a healthy idea about what it means to earn a living, save for goals, and manage their money.

These habits can start early, with some of the following:

Setting up a checking and savings account.
Teaching them how to manage their money using their banking app.
Reminding them of the importance of setting money aside for a rainy day.
Teaching them the importance of budgeting and paying bills on time.
Helping them to understand the benefits and pitfalls of credit, credit cards, and loans.

It’s also important to mirror the healthy financial habits that you are teaching your teen. If you’ve made mistakes, be sure to tell your teen what lessons you learned and how you worked to fix things.

Recognizing signs of financial trouble

Your teen is sure to start to get the idea of just how important money is. After all, he won’t get the things he wants if he doesn’t have the money to afford them.

For some teens, this can motivate them to work more hours at their part-time job or pick up extra side gigs to earn more money. However, for other teens, it can lead to the idea that there must be an easier way to get the money that he wants.

Recognizing the signs of your teen starting to form an unhealthy relationship with money is an important part of keeping him on the right path.

Ask yourself a few questions if you suspect your teen may have an unhealthy relationship with money:

Is your teen obsessed with high-end clothing, shoes, and other expensive items that should be out of financial reach?
Does your teen seem to spend a lot of time comparing their lives and lifestyle to those of musicians, actors, and even influencers?
Does your teen have unrealistic wish lists for birthdays and holidays?
Do they buy things impulsively? Even when they can’t afford to get it and also pay their bills?
Does your teen refuse to help around the house unless they are paid to?
Is your teen showing signs of anger and frustration when they can’t get something they want?

Teens who have an unhealthy mindset about money and material things can also soon lean into stealing as a way to get what they want. Stealing can extend further than just taking a few dollars out of their parent’s wallets. There can be some serious legal consequences.

Why teens steal

Teens could be stealing for any number of reasons related to their wanting to get more money. It can vary greatly, with some teens stealing simply for the thrill of it.

Peer pressure can often be to blame for a fair amount of the negative behavior that we see in teens. They may feel like they won’t fit in with their friends if they don’t have the latest iPhone, the latest game for their gaming console, or the trendiest clothes. This can drive your teen to use any means necessary to get what he wants.

Teens who are engaging in risky behaviors, including taking drugs and drinking alcohol, may turn to stealing so that they can afford to keep up with their expensive new habits. They may also lie about where their money is going when they are pressured.

Your teen could also feel a level of embarrassment to ask you for money for some of his expenses. Condoms, pregnancy tests, as an example, can be embarrassing for a teen to buy or ask their parents for help buying. They may steal to avoid needing to face uncomfortable questions.

Some teens steal and lean into risky behavior because they enjoy the way they feel when they’re getting away with something. They want the extra money but also enjoy knowing that they’ve outsmarted those they’ve stolen from.

The consequences of stealing

As an adult, you know that you face serious consequences if you take even a paperclip from an office supply store. Moral compass aside, the fear of fines, jail time, and other legal fallout can often be the primary reason that people simply don’t steal. Teens may be under the impression that they won’t face severe consequences if they steal due to their age.

The reality is that many cities, counties, and states will have different rules for teens. Your teen could be at risk of facing the same consequences as an adult would, including:

Large fines paid to the courts and to those they stole from.
Large legal fees.
Time in jail or a juvenile detention facility.
A permanent criminal record that will impact their future.
Suspension from school. They may also be expelled.
Loss of trust from friends and family members.

The consequences of your teen’s bad behavior could also impact your financial stability and your future. You may find yourself needing to spend money you don’t have on legal fees. You could also find you need to take time away from work to deal with the consequences of your teen’s poor behavior.

What can you do to help your troubled teen?

Outside of educating your teen about the importance and true value of money, just what can a parent do to help their teen?

A few options include:

Counseling can prove beneficial for teens who are struggling. Quite often, their struggles extend beyond their need for more money. Addressing mental wellness concerns can help immensely.

Let your teen feel the brunt of the consequences they face. As a parent, it’s natural to want to protect your teen, but when it comes to something as serious as risking their future for a few extra dollars, they must understand the true magnitude of their issues.

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4 Tips for Parents to Teach Their Teens About Money and Budgeting

Posted on April 24, 2022 by Tim Connolly

Teenagers are right on the cusp of major financial responsibility. They may already have their own jobs. Soon, they will be leaving home—and your supervision—to start paying their own bills, managing their money, and attempting to live within a budget.

Here are four ways to teach teens about money and budgeting before they leave the home.

1. Emphasize the ability to save―not the ability to spend.

Financial independence and wealth are often associated with nice homes, luxury cars, exotic vacations, and a high overall standard of living. But when children internalize the merits of spending as a marker of success, it can lead them to aspire to high levels of spending and overlook the value and security of saving.

As a parent, you can help reinforce strong savings habits and spending discretion by demonstrating these preferences in your own money management. Share your savings goals with your children and discuss the security and stability you experience when you have money tucked away and invested for the future.

2. Provide children with a fixed allowance.

Even if your finances allow you to provide your children with money whenever they need it, an allowance is an effective tool to teach work ethic and responsibility. Managing an allowance can also help children learn how to operate with a fixed stream of income.

A set allowance gives your child the opportunity to make hard decisions about how to spend their money. For example, they may have to save up several weeks of their allowance to afford a higher-priced purchase. Tie the allowance to weekly chores or responsibilities, and let your child make their own spending decisions—even if that means learning from their early mistakes.

3. Open a bank account with your child.

As children enter their teenage years, they may have use for a bank account—and this is an excellent opportunity for parents to educate children on proper budgeting and money management.

Go to your local bank and open an account with your child so that you maintain access to their account. Minors as young as 15 years of age can open their own student checking account as long as their parent is on the account as a co-owner.

Task your child with tracking their spending and managing their account balance, as well as performing basic tasks such as cashing checks and making deposits and withdrawals.

Monitor their behaviors and offer guidance to help them improve their money management, avoid unnecessary fees, and take advantage of the many financial tools offered, such as online banking and online bill pay.

4. Consider giving your teen access to a debit or credit card.

The idea of their child having access to plastic may make some parents cringe. However, this can be an excellent opportunity to offer guidance and coaching as your children learn how to manage these cards, as well as their spending.

Educate children on how easy it is to overspend with these cards, and show them the basic steps involved in charging to a debit card or withdrawing from an ATM. This is also a good time to explain how compound interest on credit cards works and how it can dig a deep financial hole if your child isn’t careful.

You can also provide coaching on how to be safe when making purchases online—an unavoidable scenario once your child moves out. Show them how to evaluate the safety of a potential website, for example, including familiarity with the brand and secure checkout options.

Remember: You can set daily spending and withdrawal limits to prevent major charges that would put your child in significant debt.

Financial Advice, financial education, Teach Kids About Money, teaching teens

THE TOP 10 PRODUCTS KIDS SHOULD BE SPENDING THEIR ALLOWANCE ON

Posted on April 21, 2022April 21, 2022 by Tim Connolly

One of the best parts about being a kid (besides the whole not having to pay bills things) was getting an allowance. And while kids these days are still earning cash for chores, what they’re spending it on is much different than what it was 20-some years ago.

Here are the top 5 things that kids are saving up for, and meanwhile you can focus on teaching financial education to kids.

A new phone

Yes, every kid wants an iPhone but no, not every kid needs—or is ready—for one. Our parenting editor, Anna Lane, says her child’s school has a “wait until 8th” policy and that “anything that costs a lot of money is a good thing for kids to save up for, because they learn a.) how expensive “stuff” is and b.) delayed gratification.”

Once you do allow your child to have their own phone, make sure you set the proper parental controls to keep them safe.

LEGO sets

I’m not a parent but even I know the excruciating pain that is stepping on a Lego barefoot. While rogue blocks are a nuisance, Legos themselves can actually be fun and educational.

A Nintendo Switch

People are obsessed with the Nintendo Switch (it’s the fastest selling game console in the U.S.)—and for good reason. Not only can your whole family use it at home, but it’s also the perfect size for your child to take on the go. Just make sure you protect it with one of these Switch cases first!

Dolls and other figurines

While you probably think your child has enough toys already, their allowance is great for those things that they really want but that you refuse to buy, like Hatchimals, which Lane’s kids love, or the cult-favorite LOL Dolls. Our Exec Editor, TJ Donegan also says that by making your child use their own money, you’re teaching them how to save and budget.

“You can even set them up with their own savings account at a local bank or credit union,” he says. “If your kid is old enough to handle their own money, they’re old enough to learn how to manage it wisely.”

Books and magazines

For the kids who love to read, their choice in books and magazines will come down to personal preference. For Lane’s family, however, she says they love the Harry Potter books (who doesn’t?!) and Ranger Rick and Ladybug magazines. And if your child isn’t a reader—but you want them to be? These must-have audiobooks could be a good starting point.