By the time most kids hit their teens, they already have an established spending culture. Once they hit their mid-teens, they start spending on more expensive stuff when they have the money. The issue here lies in the idea that many of these kids do not have any real appreciation or value for money. They got it; they spend it! Instant gratification is what it is all about for many.
If you have older teenage kids, then now might be a good time to start teaching them about the value of money. By this age, they can go crazy when it comes to spending money on the things they love. If they aren’t taught about the value of money, they could end up in serious financial trouble further down the line. One way they can learn to value money is to first learn how to earn it. Remember, money gifted isn’t money earned…
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Why Teenage Kids Need to Start Earning
In this post, we will examine four reasons older teens need to start earning their money. Keep reading…
Independence
The first thing older teens benefit from making there is financial independence. Once they start earning, they no longer have to rely on their parents or guardians for everything. This means that they not only learn to value money but they also develop independence that will benefit them throughout their lives.
One platform making the wave among teens these days is OnlyFans. Some of the best teen OnlyFans accounts started from that itch to earn and be independent. Independence, again, leads to greater responsibility. When kids earn their money, they can even contribute to the household bills.
Teaches Them Savings culture
As your kids earn, you need to start teaching them some savings culture. Teach them to always put something aside for a rainy day. Set a number that is agreeable to both of you – for instance, you can suggest that they aim for something near 20 to 30 percent of their earnings within a particular period.
Teens can then work toward this target when it comes to their money. Every time he or she gets paid, they say to themselves, “Oh, I must always leave 30% in my piggy bank!” This encourages them to think about the future and avoid those teenage impulses that make them want to spend all their money at once. They will realize the power of putting something aside as they see their money grow.
Builds Discipline
The third reason older teens need to start earning their own money is the discipline it builds. Imagine, your teen has been earning money for a while. They have learned to save on a regular basis and watch their money grow. Imagine the excitement of knowing just how much they have saved. Now, this is where things can go downhill if you aren’t careful.
Making money as a teenager can also have its downside. When your teen sees how much they have got in their piggy bank, the temptation to spend may arise. That’s when they start thinking about the possibilities. They start seeing all the expensive stuff they’ve always admired: the clothes, the shoes, the bags, that video game, that new phone … the possibilities are endless when they have the cash available.
Teaching them to build discipline in the face of these impulses will help them overcome the urge. Money saved should remain that way and should not be a ticket to a spending spree.
Also, as we discussed in the last point, setting a percentage of earnings aside helps them see the bigger picture.
After a few months, your teen may look back and say, “Wow! I saved all this money in just xxx months! Maybe I should set a new target. I want to have xxx amount saved before the end of the year.” You get the picture. They now have the discipline to work towards this goal.
Prepare for Emergencies
Last but not least, teaching your teen to earn helps them prepare for emergencies. You can’t always be there for them; they should understand that. Teach them the value of independence and why they must have their own money. There may be situations when they may need to pay for emergencies, and you, as the parent, may not be in a position to help. So what happens?
This is why you need to make them understand the importance of preparing for emergencies. That way, in situations where you don’t have the money for a field trip or any important item they may need at any given time, they can always dip into their savings.
Help Your Older Teens to Start Making Their Money
As a parent, you can help your older teens to start learning and earning when it comes to money. Offering advice and support can put them on the right track. The earlier they learn these things, the better it will be for their future.