Teach Your Teens Five Things About Money
Recently, my son and his friends went to the Homecoming Dance at their high school. When the boys gathered at our house for photos and pizza before the party, I took my son aside and handed him a $ 20 bill.
He looked at me questioningly and I said, “In case you need a little extra money.” He rolled his eyes and immediately told me that no one else uses cash. “Ah, that’s what Apple Pay is for, right?” – he joked.
When he returned home later that night, I asked him how his evening had gone. He and his friends went to a local diner after dancing and he said he basically had a great time.
“We were thrilled until the waitress got mad at us,” he said.
After some discussion, it became clear that my son and his friends realized that the diner was not really equipped to pay for Apple. They all struggled to pay their individual bills with credit cards or cash, and the waitress was unhappy with the group of 10 boys.
Sure, I can imagine how annoying this table must have been, with fart jokes, loud laughter and panic about how they would pay their bills, but it also made me realize that there is something about money that all teens should know. Moreover, they spend more time in the diners late at night without us.
1. Basics of accounting
These days teenagers find it much easier than us when it comes to teaching accounting skills. And, yes, it’s true that they’ll never know what the hell happens to trying to manually balance a checkbook, but the fact remains that teens need to have a solid grasp of basic monetary skills.
By teaching them the basics of saving money, budgeting, and making money to fund their social lives, to a large extent, they will make them more independent in college.
2. How to calculate the tip
Before my son left for the dance, I reminded him to tip the waitress and reiterated how important it is to tip. And I taught him this simple trick to calculate the standard 20 percent tip: Take 10 percent of the total bill and multiply by 2. This is a quick and easy way for even the most forgetful teenager to understand the concept of a proper tip.
And don’t worry: if your teenager doesn’t learn this skill right away, he will understand as soon as he waits for tables.
3. How to write a check
Yes, apps like Venmo and PayPal hold sway over teens, but in all likelihood, they will still have to pay their cable TV or other bills manually. This means that you and your teen explain how to fill out the details of a paper check. This is also a good time to get familiar with the basics of accounting as the check will be sent to their checking account.
When my son first learned to write a check, he was surprised to learn that money had magically disappeared from his account and that he would have to adjust his spending habits to account for the money spent.
And while you’re at it, it might be a good idea to take the time to explain why check fraud is illegal.
4. How to use an ATM
I know it sounds silly, but teens are so used to money apps and in-app purchases that you can’t assume they’ll know how to get money out of the bank in an emergency.
Making sure your child has memorized their bank PIN and knows where to find the closest branch of their bank to their high school or campus can be a lifesaver in a pinch.
Take time to review your withdrawal receipts in case your child finds himself in a situation where he or she has to deal with banking face-to-face. And of course, most bank tellers are very helpful, but customers who have a basic working knowledge of banking are always welcome.
Explain how the ATM works and remind him that most banks have a cash withdrawal limit. While it may seem ridiculous to look at such general information, you will be glad you did when your child is going through a financial crisis two hundred miles from home.
5. How to pay people
We all remember those college nights when pizza was ordered at midnight or drinks mysteriously appeared on the table. One of my biggest annoying vertigo was when my friends ate a pizza that we ordered as a group, but it seems that they “forgot” to refund me the money I gave the courier.
Talk to your teen about the basics of monetary etiquette: teach him to respect his friends and roommates when it comes to money. Remind them that gas isn’t cheap, pizza doesn’t grow on trees, and it sucks to be a kid with a bill at the end of the night.