1. Help your kid in making a budget
Ask them to put their mobile phones to some use, and use our budgeting app, EveryDollar. Ask your kid to prepare a budget for each and everything, no matter how small it looks. This will help them in their planning, and will be beneficial in the long run.
2. Teach them about compound interest
We understand that it is not as easy as it looks, it’s not easy to make the kids investment savvy. However, you need to make a start somewhere, and there is no better way of investing than getting your teen introduced to the idea of Compound interest. The sooner you introduce your kid to Compound interest, the sooner they start investing for their future.
3. Set them a bank account
If you have been following the above mentioned tips, you would be able to set a bank account for your kid by the time he/she is a teenager. This will make money management easier, and will prepare them for managing a much larger account as they get older.
4. Teach them how to use credit cards
As soon as your kid gets into the college, they will start getting offers from various banks for credit cards. And, if you have not taught them about the dangers of credit cards, and how to use them wisely, they will become one of the victims of it. So, don’t waste any time and teach them everything there is to know about these plastic cards.
5. Make them save for college
Make sure that your teen starts saving for college. If they are working a summer job, make sure to put some of that saving in their college savings account. Talk to your kid, and tell him/her how proud you are that they are contributing towards their college savings account, this will make them more responsible.