Fredericksburg Parent

38 Fredericksburg Parent and Family • July 2024 family money WRITTEN BY NIKKI DUCAS The proverb "give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime" is attributed to Chinese philosopher Lao Tzu. This same quote is true for money management and teaching teenagers to be financially responsible. As a mom of a young teen and tween, the long days are dwindling and the number of years before they are out of the house and need to be self-suffi- cient are quickly approaching. I can only pray that they have been watching and listening when I have been walking the walk about being financially savvy. It's never too late to impart financial wisdom to your teenager. For my teen, I must sound like a broken record, but my instilling these ideas in his head now will hopefully set him up for financial success. • BUDGET – Help them have a plan for their income. Whether they have a part-time job or they are doing odd jobs for family members, now is a good time to plant the seed for saving for a car or other big-ticket item. Long-term savings is a hard concept for many teens to grasp since they live in the moment. With a little effort and putting some money aside, they'll start to see their savings grow. • BEYOND HIGH SCHOOl – What's next? Does your teen want to go to college or a trade school? It's important to open the lines of communi- cation now and for them to understand their financial responsibilities. Have your teen research what their degree or trade will pay once they graduate from college or complete their apprenticeship program. This will help them understand how much debt they may want to take on in student loans. Teaching Teens to be Financially Responsible • PUT IT ALL IN PERSPECTIVE – My children have 529 plans (college savings plans) and know that this money is set aside for their college education. My teen has his eyes set on college and is watch- ing his older cousin do his research between tuition costs at a private college and a state school. My nephew is shocked at the cost of higher education but that is not a reason for him not to apply to a university. There are government or private loans and myriad scholarship opportunities. • PAYCHECK SHOCK – All that work and that's all I made? Paying taxes and social security is all part of the daily grind that all workers have the respon- sibility to contribute to. I have always divided my teen's "pay" into separate envelopes, one each for giving, saving, investing, and spending to hopefully lessen the blow when he gets that first paycheck. Even so, I'm sure it'll still be a shock to see that money taken out of his paycheck. Set your teens up for financial success and allow them to spend some of their money using a debit card. Help them manage their money through a custodial bank account, encourage them to enroll in a personal finance class and, most importantly, keep a budget. With these tips, I'm hopeful they'll have a healthy rela- tionship with money.

• Cover