Youngsters often tend to idolise the adults in their lives. During the teenage years, when they are frequently confused about just about everything, it is relieving to see those who have survived these years and come out successful.
While in the past, parents and children often had an inclination to explore professions like medicine, law, research, today, from a young age, many understand how lucrative starting a business can be. They also encounter countless stories of successful teenage and young adult entrepreneurs.
Today, starting their own business or brand is an attractive prospect for many youngsters, no matter the field in which they excel. The adults in their lives, the parents, the teachers, etc. do have a responsibility to teach them how to do various things the right way and learn from their mistakes. If you are the founder of your successful business, there is a good chance that your children might find you inspiring. As a parent, you must educate them on this incredible object called money to help them with their growth and success later on in life.
Taking one step at a time
There are several ways your child can interact with or earn money during their school years. The laws regarding permitting children to take up jobs vary from country to country, so keep those in mind while you recommend the possible routes your child can take. It is always best to start out small, in a reliable environment under the control of other adults.
Fundraising events at school
Getting children to take part in a fundraising event conducted by the school or a group of students is a great way to introduce them to the concept of putting in your efforts to earn money. Since it is a group environment, they will also learn how to coordinate with others and have fun with what they are doing. Most school-related fundraisers are for specific causes, equipment, facilities etc. and not personal gain. So these can also act as a good occasion for them to learn selflessness and the satisfaction of working for something beyond them. If your child comes up to you with a relevant issue they feel needs to be resolved at the school, you can encourage them to approach the proper authorities, groups or clubs to set up a fundraiser.
Some of the Best Fundraising Ideas For Schools & Students include car washes, yard sales, bake sales, school dances, movie nights at the school and competitions for teachers and parents.
Most parents give their children money to use for small needs such as hanging out with their friends, going out to eat, buying an outfit, etc. This is a great way to get them to be independent from a young age and to teach them to not rely on you for their needs.
But, providing them with cash every time they ask can result in them taking money for granted, believing that no matter what they do, and no matter how much they spend, they can easily get more again.
Assigning chores is a wonderful alternative to handing them cash regularly. Create chore lists, and if they complete a particular task, give them the money you had previously settled on. While this ensures that your children have the money they need, they will also learn that money won’t be easily handed out whenever they demand it.
Making allowances dependent on household tasks is great to teach them a sense of responsibility and how to put in their best efforts to get what they desire.
In many countries, teenagers above 14 can be employed by establishments or individuals. There are a prescribed number of hours under which a teenager below the age of 16 can work each day. Encourage children to find part-time jobs at any local firms, and make sure that it doesn’t interfere with their school work. They can also take up tasks at the homes of elderly individuals and help them out.
Getting employed will provide children with a wonderful opportunity to develop work ethics, coordinate with the co-workers and their employers, and best of all, earn money for themselves, without relying on any adults. As the parent, you must ensure that the work is appropriate for a teenager and doesn’t consume a large part of their lives.
Baby-sitting and pet-sitting are also great options for teenagers to earn money. Ask around in your community if anybody requires help with their children or pets when they are not home. These jobs are also wonderful at making them feel more responsible and teaching them the implications of having to take care of and ensure the safety of someone else.
Open a store
If the child is skilled at arts and crafts or developing ingenious devices, they can sell their creations on online platforms, or by inviting over acquaintances to a specific location.
Etsy is an excellent platform for creative individuals of all ages, and you can directly connect with those who appreciate art. So if your children have any such talents or skills, suggest that they sell their items to earn some extra cash.
If the child has an interest in other fields such as editing, developing, designing or animation, they can engage in freelance jobs for businesses and individuals. There are many popular software available for creative individuals and lots of free online courses. If the child desires to make use of this talent, reach out to adults in your circle who own small businesses and ask them if they need help with designing posters, ads, etc.
Learning to value money
Even if these children have found their own means to earn some cash, it will not be easy for them to immediately learn how to value it or save up. Many might tend to use up all their hard-earned money on some object they have desired for a while and lose the motivation to work hard afterwards. As the adult in their lives, it is up to you to guide them on taking care of their earnings and thinking about the future.
Teaching teenagers to save money can seem like an extremely daunting task, but it can be done with the right techniques. Teenagers have a tendency to use up their money as quickly as they receive it. You have to be the stern voice in this situation and advise them to control their spending.
During the late teenage years, they will often develop a desire to buy a car for themselves. Most times, they turn to you to actualise this dream. But, to teach them the value of their money, ask them to acquire funds on their own. Take some time to discuss a strategy with them, detail out how much they will have to save from their earnings to be able to buy a car after a certain period of time. Make them as independent as possible from an early age and always be there to support and guide them.
Teaching them the importance of setting up objectives for their future can impart them with one of the most important qualities they need in life, namely patience.
Budgeting is a wonderful skill that must be learned as soon as children start handling their own money. Make family budgeting sessions a part of your monthly routine. Sit down with your children at the end of a month and ask them to note down how much money they are going to spend the next month and for what purpose. In the beginning, you can help them create a zero-based budget in which all of their expenses equal their income.
Help them allocate the right amount for each need in the coming month. Besides regular expenses for purchasing and food, tell them to keep aside some money for charity.
Right from an early age, teach children the importance of giving back to the community or helping the less fortunate. Take them along with you when you take part in donations or helping charities gather funds.
As you teach your teenagers the power of giving, you will instil in them a sort of happiness and satisfaction that they will bring to their adult years. So, no matter how successful they become, they will always remember the power of giving and continue this practice. This also helps them grow more as a humane and selfless individual who put others before themselves.
Set up a bank account
Young children quickly outgrow their piggy banks once they start earning an allowance or find part-time employment. Since they are still young and unconcerned about their future, they will naturally have a tendency to spend all the money they have at hand. They also feel assured that even if they run out of all their earnings, they will be paid again the next month or receive the allowance.
So, it is up to you to set them up with a bank account where they can deposit a part of their earnings each month. Tell them how these savings could be utilised in the future for purchasing a car or paying their college tuition. It can also go towards funding a backpacking trip if they desire to take a year off after school and explore the world. Setting them up with a bank account will make them more mindful of the way they spend money and the amount they spend each month.
Since you will be directly involved with the bank account, you will also receive transcripts regarding their spending habits and can teach them how to manage their money better. Ask them to keep track of every withdrawal and how they spent that money. Carry out a reconciliation at the end of each month to ensure that your children are aware of where their money goes.
Give them the reins.
A few times each year, give your kids a specific amount and let them know that they are responsible for paying some of the bills and buying the groceries, for a particular period of time. This is a fantastic way of teaching your child to be in control of their impulses to spend or waste large amounts of money. Since they are now responsible for various basic necessities, they will be more careful with each dollar they spend. Ask them for the receipts and any balance cash they might have with them.
This method can also help them learn how to live with a limited budget, something they will experience when they are right out of college and hunting for jobs.
Teach them about insurance
Once your child has purchased a car with their own money, it is time to let them know about the basics of insurance. Tell them how insurance can help cover enormous costs and help them understand each feature that the policy covers. This can act as a base for the various insurances they will be taking in the future.
Teaching them about the risks that come with accidents will also prompt them to be much more careful about their attitude and behaviour when they are behind the wheel.
Thinking about emergencies
Apart from money put aside for savings, advise your children to consider dedicating a particular amount each month for an emergency. For children, the emergencies do not come in any serious forms, and you’ll be there to help out if something severe happens.
But, once they start putting aside this fund for an unseen emergency, they will carry on this practice to the future where it will be much more useful and necessary.
Also, teach them that impulse buying does not count as an emergency, and they should not be wasting their hard-earned money on a shoe or an outfit they just saw online. Educate them on how to distinguish between proper emergencies and unnecessary desires.
Childhood is probably the most critical period in one’s life, and as an adult, you must ensure that your child has an opportunity to learn while they grow. Teaching your child to earn their own money and manage it wisely can help them develop the right attitudes when it comes to setting up their own business and optimising the cash flow. Young adults who desire to venture out into the world of startups should most certainly be taught how to be independent and how to save for the future.