Teens are in the process of learning what might be the most powerful money lesson of all: The connection between their earnings and their purchasing power.
The Chinese New Year brings ancient celebrations and customs to communities across Canada. One family tradition is for parents to give their children a gift of paper money in a red envelope — red being the traditional colour of luck. Even if you don’t celebrate Chinese New Year, the holiday is an opportunity to discuss different cultures’ attitudes toward money with your children. These cultural differences can teach us (and our children) a lot about managing our own funds.
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Gift cards are more popular than ever. Over the holidays, even young kids can expect to receive a bounty of plastic from well-meaning friends and family members. They can be a great way for your child experiment with plastic in a controlled way and help them begin to understand how to budget. Here are some tips to help you guide your kids on how to use their cards responsibly.
Treat cards like cash
Kids generally understand that a gift card represents a specific amount of money.
One of the key financial concepts you’ll likely be teaching your kids is to save for a rainy day – to establish an emergency fund. A great way to encourage them to do that is by setting an example and opening a Tax-Free Savings Account (TFSA). Not only does a TFSA provide an easy way to put money aside for unexpected expenses, it also can be used to save for long or short-term goals – tax-free. And when your child turns 18, they can follow your lead and open their own.
The holidays are about giving, sharing and good cheer. The days leading up to them, however, can put money-management skills to the test. And that makes the holidays a perfect time to teach your teen about saving, spending and giving.
Most teens are excited about the prospect of earning their own money whether from an official part-time job at a fast-food hangout or something a little more casual like babysitting, delivering papers, tutoring or computer troubleshooting.
But even the keenest teens may not be prepared for the responsibilities of getting and keeping a job. Here are seven great ways to help your teen have a positive first work experience.
1. Help prepare a resumé. Yes, many of the businesses that hire young people have their own application forms.
Help your teen set goals, track expenses, and stay motivated to budget. For many teens, the word is right up there with “homework” and “curfew.”
But take heart. When your teen realizes that budgeting is just a way to set and achieve goals, she’ll probably be more open to it than she is to her curfew!
The fact is most teens don’t have a problem spending the money they get from gifts, allowances, or a part-time job. What they need help with is finding a comfortable balance between income and expenses. Here’s what you (and your teen) need to know.
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The early teens are a good age for children to start shaping their dream of the future and start preparing for them — with your help, of course. Financial expert Alison Griffiths offers her advice on how to help your 13-15 year-old identify and save for a longer-term goal.
Why are longer-term financial goals important at this age?
In Canada, you can’t get a credit card until you reach age of majority in the province in which you live. But credit cards (and credit card advertising) are so prevalent in our society, it’s definitely not too soon to start teaching your teen about the smart use of credit, even if he’s still a few years away from getting his own card.
Compound interest
Any discussion about credit cards should probably start with a lesson about the power of compound interest.
Turn your budding shopaholic into a careful consumer
Whether your teen gets his money from a job, an allowance, or gifts, he needs to start learning how to manage the tricky trio of earnings, expenses, and expectations. One big step toward accomplishing this is giving him control over some of his own financial responsibilities. Here’s how.
Start with a budget
Credit card smarts
In Canada, kids can’t get a credit card until they reach the provincial age of majority. Although Lorelei’s kids are only 13 and 15, she discusses the costs of credit with them, along with the responsibilities involved.
Credit card smarts
In Canada, kids can’t get a credit card until they reach the provincial age of majority. Although Lorelei’s kids are only 13 and 15, she discusses the costs of credit with them, along with the responsibilities involved.
Wants and needs
Watch how single mom Lorelei helps her teens distinguish between “must have” items they need to buy and “nice to have” things they want, along with tips from parenting expert Alyson Schafer.
Eye on the prize: Helping teens save for long-term goals
At any age, establishing a saving habit is key to reaching long-term financial goals. Here, single mom Lorelei discusses goal-setting, prioritizing and saving with her teens as she helps give them the tools they need to save for what they want.
Whether your child is just learning to count change or is already becoming the next great entrepreneur, The Zone’s age-appropriate games and activities, will help him or her develop the skills they’ll rely on for a lifetime — and have fun at the same time!
