How do I teach teenagers about money, savings and investment?
I was recently called upon by a teacher in an high school to give a talk on “money: the culture of savings an investment “ I’m somewhat skilled in the subject topic but I just don’t how to teach teenagers
Answers ( 2 )
Teens are pretty much all about survive the 'rents and rules until they are 18, when they will be able to do whatever they want. So, the way to reach them on finances, is to get them interested in how to make turning 18 and doing whatever they like not only easy, but much more fun.
So you're 18- so? Got a car? An apartment? Are Mom and Dad springing for those things- and if they do, do you really think you aren't still tied to the 'rents?
And if they aren't, how are you going to do it? Get a job? With your high school diploma? Making minimum wage for crap hours busting your hump only to discover you can't afford even your phone payment? Shit's Stuff- stuff's gonna get real toot de sweet, Skippy.
That's why they might want to (<----note: not need) learn a bit about handling their finances- not just "Save your money!" but how to do that smartly, and how to make money work for them.
Then hit on all the things they are likely pleasurably contemplating in their future: A car? How to pay insurance, get gas, pay for routine maintenance- and by the way, do they know how much a set of tires costs? And oil change? Which is where you bring up credit- the cards and lines of- how to tell a decent credit cost from usury. Interest is interesting- but not when you on are the paying end.
Make it germane to them and their interests. Best you'll be able to do- teens aren't that interested in actually doing adult stuff, they're more interested in dreaming about what theirs will be like....
I would teach them that there are only 3 things that you could do with money: Save, Spend, Give. They need to first decide on percentages of each category based on their income. For example, I teach my boys 10% to give, then they decide % on Saving and Spending. This is reflective of their goals, saving for a computer to buy, saving for a car, saving for college, etc. Spending could be their monthly spending like $50 for entertainment (movies). The goal is that they have a budget and once they've spent or pre-allocated their money, then that's it for the month unless they work some more.
The main thing that a teenager should invest in is in themselves. Thus savings for college and exiting college with NO student loans would give them such a huge leg up in life. Their future earnings potential is the greatest investment and has the greatest ROI than any mutual fund or stock or bitcoin investment.
Happy to speak more if you would like on this subject.
Thanks
Bill
bill@learning2launch.com