Many people are worried about what will happen if they are unable to meet a bill or a payment. More people are living from paycheck to paycheck than ever, and when it comes time to provide for your family, a loss of this regular income or too high a financial demand can face you feeling very demotivated from a fiscal standpoint.
One of the best ways for someone to go through life with a strong understanding of how to ethically behave with their finances is to be taught by their parent at a young age. For this reason, teaching and showing your older teenager the way money moves and how to provide for their household when money is tight can be one of the most beneficial things you can do.
If you are struggling financially, that doesn’t mean you need to hide that from your older teenagers. Many parents do to prevent them from worrying, and this is more than understandable when the child has grades or responsibilities which could become adversely affected by the financial needs of a household.
However, there is great opportunity here to teach them the value of being frugal in the hard times. Not only that, but teaching them how to gain money in a pinch can be valuable as well. Here are the best methods of doing so:
The Value of Work & A Paycheck
Many teenagers who have been comfortably looked after by their parents often identify what industry they’ve loved to work in, no matter how competitive, and strive for that only. While chasing dreams is admirable, it can often neglect the reality of needing to keep up with the payments that aren’t as easy to meet. Pursuing a career as an actor, musician or artist is usually supplemented by a part or full-time gig in bartending or hospitality, or another entry-level job which can provide them with a paycheck.
As an artist, this can be demotivating, to say the least. However, it’s important they go through this period to understand the exact value of working hard for what they get and the value of a paycheck. Teaching them your story and what they can expect, such as drawing up a mock income and expenditure lesson could help them get to grips with the world they face in their late 20’s. If attending college, it will also help them avoid the crushed feeling when they don’t ascertain their perfect job in the first days after graduation.
Teaching your child the benefits of having good credit can help them avoid the mistakes made from bad financial planning. Showing them the process of applying for a lucrative signature.loan and helping them understand how this can build your credit if you act wisely can help them take a reasoned and rational approach to their finances. Seeing you go through this process will make it seem less scary, and help them understand that getting out of a financial pinch has many options of resolution, provided repayments are understood and available to be met.
With these tips, your teenager will likely be much more wise about their financial future.