- More than 30% of teens don’t believe they’ll be financially independent by age 30.
- In spite of a strong economy, many teens lack confidence when it comes to achieving financial goals.
- Parents can help their children by setting a good example, teaching them how to manage money and setting financial boundaries.
Approximately one-third of young adults ages 13 to 18 do not believe they will certainly be able to hit major financial landmarks by age 30, according to a national study by Junior Success and also Citizens Bank. The survey revealed a couple of more engaging statistics concerning teenagers and money landmarks at age 30:
More than 30% don’t believe they’ll be economically independent of their parents.
Just 44% believe they’ll have started saving money for retirement.
Less than half of those surveyed think they will have settled their student loans.
In some ways, these outcomes are unsurprising. Outstanding student loan debt stands at over $1.5 trillion as of April 2023, according to the Federal Reserve. Understanding that could influence a teenager’s capacity to feel great about planning for their financial future.
A different survey by Piper Jaffray found that teenagers invest concerning $2,600 a year on apparel and also food, showing your kid might not have the financial literacy skills they require to begin saving.
3 Ways to Teach Kids Financial Literacy
April is identified as Financial Literacy Month. For parents of teenagers that might share the exact same sensations as those evaluated regarding financial landmarks, this month can be an especially suitable time to speak with their youngsters regarding money.
With financial literacy at top of mind these next couple of weeks, here are 3 methods parents can assist their teenagers become economically independent:
1. Model Good Financial Behavior
Greater than 60% of teenagers will resort to their parents for financial advice, according to the Junior Achievement and also Citizens Bank study. So the most effective way moms and dads can show good financial routines is by modeling those techniques in their own lives.
Moms and dads can do this by paying their bills on schedule, preserving an excellent credit score, living listed below their methods and saving money towards retirement.
2. Show Kids How to Budget and Save
As soon as youngsters comprehend the various means they can earn money, they need to find out how to manage it. This must start as early as feasible; a 2022 Purdue research located that by age 7, a lot of kids’ financial behaviors are set.
To give them a complete image of what budgeting looks like, parents must consider including their kids in the family’s budgeting sessions. This is a good way to discuss how to track spending, pay bills and also automate cost savings.
3. Set Financial Boundaries
Experience is the most effective instructor. At some time, youngsters will certainly need to learn how to support themselves. In the meanwhile, moms and dads can help by setting strong financial limits with their kids.
When youngsters come to be grownups, moms and dads aren’t obliged to support them monetarily. Although financial support is a personal choice, setting borders can be among the very best motivators to assist children carry on as well as discover financial freedom.