The importance of teaching your teen money management – WVLT

KNOXVILLE, Tenn. (WVLT) -Talking to children about money is something every parent should do, but speaking with kids of different ages calls for a different approach.

Melissa Maciejewski from SouthEast Bank said it’s important to teach kids under 12 smart money habits and building on that foundation.

For teens, it’s even more important in today’s climate.

“We’re seeing more states require financial education and the COVID-19 outbreak has created some challenges. For example, at this stage in life they should be able to understand the concept of money, but things like limited social interaction have made traditional teaching methods like comparing prices of items at the grocery store and completing transactions with retailers more difficult,” said Maciejewski.

“A lot of learning at this stage starts with a simple conversation. Now’s the time to show teens a utility or phone bill and explain how to read it and how it’s paid. Pointing out different types of bills whether it’s a mortgage, car loan, or credit card, can be useful and set up future conversations around responsible spending habits. We recommend that, at the very least, parents teach their teens how to create a simple budget or how to build a plan for saving for a future goal,” she said.

It’s a good time to also help them open a bank account. “If they’re under 18 they’ll need an adult on the account, but there are plenty of good options out there. For any account, take time to read about any fees that may be charged and any other important details.”

She said the best way to teach children about money is to actively work with them on how to spend and how to save.

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