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Financial health isn’t only for adults; when young people learn how to be responsible with their money, it teaches them good habits that will last a lifetime. That’s why it’s so important to talk to your kids about how to navigate financial situations that will apply to them both now and down the road, such as how to find the right car insurance, how to save money, how to open and maintain a bank account, and how to create a realistic budget. The earlier you teach your children about these things, the easier it will be for them to implement good habits and make them a part of their natural routine. We’ve included a few financial tips for young people below to get you started.
How To Shop
Many young people aren’t aware that they can save a ton of money when they shop by utilizing deals and coupons, so they don’t even try. Learning how to find a bargain can help them figure out how to plan a budget, so it’s an important part of responsible financial decision-making. Talk to your kids about how they can get the best price on anything they need by comparison shopping, using coupon codes, and check out special sections of websites like Amazon, such as the Bargain Bin. And according to Rakuten’s Amazon shopping guide, the retailer even has an outlet store that provides some great deals.
Car insurance can be tricky to understand; there are so many facets involved that it can easily be overwhelming to a young, inexperienced driver. Help your child learn the ins and outs of auto insurance and why it’s essential once they have a vehicle of their own. Talk to them about ways they can keep the cost down, such as being a safe driver, keeping their credit score maintained, keeping up their grades in college, and making sure the policy doesn’t include something they don’t need, such as a second roadside assistance service. Finding the right car insurance policy can take some time, so remember to be patient as you and your child look for the best fit.
Creating A Budget
Creating a budget is something everyone should know, but it’s a skill that often gets overlooked by young people. Talk to your child about how to assess their income versus their expenses and how to create a realistic budget that they can stick to. Also, make sure they understand the potential dangers of online shopping and how ads on social media sites are targeted toward them according to their likes. It’s also important to let them know that while it is possible to be responsible with money, it doesn’t mean they can’t buy things they want; they just have to figure out little ways to save in order to make it work.
Having a bank account is a huge responsibility, as is opening up a credit card account. These are necessary tools for young adults, however, and teaching your child about how to use them the right way will help them avoid quite a bit of trouble down the road. Talk about banking fees and rules, how to balance a checkbook, how to maintain a debit account, and how to avoid deep debt with a credit card by using it responsibly.
Teaching your children good financial habits now can benefit them for many years to come. As such, it’s very important to talk about both the pros and cons of any given situation so they’ll understand how to navigate through an often confusing world. With the right tips and advice, your child will be set for healthy and responsible adulthood.