Everyday Money

How do we teach our teenage children how to handle money? The use of money involves logic, facts, and a healthy dose of discipline. These have no place in teenage brains.

If as parents you are over indulging by being the bank of Mum and Dad you certainly won’t inculcate good financial habits so here are some suggestions:

•Give your teenager an allowance after they have completed their appropriate duties, I define these as a contribution to the bottomless well of domestic duties.

•Send your teenager to the supermarket with your shopping list and cash – thus giving them a sharp dose of financial reality.

•Sit down with your teenager and show him or her your budget.

•Suggest that they draft up their own budget – much support will be needed at this point!

•Take your teenager to an advisor and get them started on a KiwiSaver which will give them a kickstart for retirement savings and access to housing finance.

And finally...the best of luck!