Tips to Create Programs in Money Management for Teens
Money management for teens is a unique subject that requires a specific touch. On this site, we discuss some of the best topics to cover in financial literacy training programs for youth to capture and keep teenagers’ attention. We also present some of the individual challenges kids face that will affect their financial futures.
How to Attract and Keep a Youthful Audience
To make training in money management for teenagers useful, the key is to emphasize those topics that are most applicable to their lives. Although each kid is different, most of them will encounter common life experiences that require financial decision-making skills.
For starters, many teens will be looking into buying their first car, so a personal finance class for high school ages can take advantage of this teachable moment. As sophomores and juniors, they’re becoming eligible to get drivers’ licenses. They will find training in how to budget for a car purchase, select a practical make and model, recognize all the expenses of car buying, obtain insurance, and apply for a loan extremely valuable at this age.
The next topic of importance is how to pay for higher education. College-bound students need to learn about course and career planning, financial goal-setting, funding sources, and calculating the ROI of education. This supportive type of program in money management for teens is sure to grab their attention.
Another constructive message for teenagers is how to move out on your own. Youth in the upper grades of high school and in college are likely to benefit from such information. Budgeting, savings goals, renting a living space, determining income vs. expenses, and the ins and outs of credit are key topics for young adults getting ready to strike out on their own.
Key Challenges Affecting Money Management for Teenagers
Good programs in financial literacy lessons for teens must consider several obstacles young adults are likely to face. For example, what is the financial family situation they inherit? Are they born poor or wealthy; are their parents spenders or savers? Every family confronts its own unique set of circumstances around money. The fortune of birth does affect one’s future finances; but even if kids are born into difficult situations, there’s still hope for change.
Another feature influencing the youth environment is the financial behaviors they’ve established. Behavior is shaped and modeled by kids’ parents, peers, and – of course – advertising. Research has estimated that marketers spend upwards of $12 billion a year to get their products in front of children, and children are exposed to more than 40,000 commercials in a year, says the American Psychological Association http://www.apa.org. It’s not hard to see how marketing can be detrimental to teens’ financial health as they mature.
A person’s emotional relationship with money also forms early in life, and emotions have powerful effect on money management for teens. At this life stage, it’s crucial to help young people develop positive financial attitudes and beliefs in order to become confident, capable money handlers.
But very few teenagers receive any formal financial education. Very few schools are teaching any financial literacy to teens, and parents often fail to give their kids vital money lessons. And those few adolescents who do get training frequently have a substandard experience due to the below-average quality of so many financial literacy programs.
The upshot is that youth are entering the real world unprepared, without the financial systems and support they need to achieve success and security. This situation is unfortunate, especially at a time when young people have opportunities to begin investing.