Most parents overlook discussing money matters with their children because they don’t think it’s necessary. They assume that their children will know how to handle money when the time comes.

However, most teenagers have no clue. According to Deloitte Millennial Survey, <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" target="_blank" rel="noopener">46 percent of Gen Z respondents</a> experience stress. Two-thirds live paycheck to paycheck, worried about meeting expenses and financial security.

As parents, you can help them avoid these stressors. Have the “talk” with them before sending them out into the world as adults. Here are some financial topics you might want to discuss with them.
<h2><strong>Allocating Money</strong></h2>
The first thing you should discuss with your teens is the concept of savings. Start with your household budget. Teach them how to allocate funds for daily expenses, savings, charity, and investments.

One good strategy is teaching them the 50/30/20 rule. This method breaks down earnings into:
<ul>
 	<li>50% essentials</li>
 	<li>30% personal expenses</li>
 	<li>20% savings</li>
</ul>
Most financial experts advise setting aside 20 percent in savings first, and what’s left should go to other expenses. Encourage them to have the proper mindset by opening personal savings accounts. Let them see their money grow!
<h2><strong>Talk About Retirement</strong></h2>
Retirement might be something far from your teen’s mind. However, they should understand that they need to plan for one of the most significant expenses of their lives. The perfect time to introduce them to <a href="https://www.investopedia.com/terms/c/compounding.asp" target="_blank" rel="noopener">compounding </a>is when they are teenagers. The earlier they start saving money, the bigger their retirement nest eggs will be.
<h2><strong>Give Credit Cards</strong></h2>
Allowing your teens to have credit cards might seem like a bad idea. However, it is an effective way to train them about responsibility and accountability.

Teens can legally apply for an unsecured credit card when they reach 18. You can give younger teens a teenager-friendly credit card with a spending limit.

One example is a <a href="https://www.investopedia.com/terms/s/securedcard.asp" target="_blank" rel="noopener">secured credit card</a> backed by a deposit account. Your teenager can use the card up to the cash amount available in the account.

Another option is to apply for an Apple Card, a digital card they can access through iMessage. It also comes with weekly and monthly <a href="https://www.inbusinessworld.com/how-to-apply-for-a-bank-account/">account</a> updates.

You can also get your teen a cashback card with no annual fees. Go for something that offers a flat rewards rate, so it’s easier for them to track their spending limits.
<h2><strong>Introduce Money Management Apps</strong></h2>
Most teenagers today are digital natives, so they’ll feel comfortable using money management apps. They can keep track of their savings, investments, and expenses without trouble.

Some financial <a href="https://www.inbusinessworld.com/aso-the-seo-of-the-apps/">apps</a> integrate with budget trackers. Instill the importance of updating these apps to see their spending habits.
<h2><strong>Maintain Open Communication</strong></h2>
You may find it strange to discuss money matters with your teenager. Still, it can have a significant positive impact on their lives. Not only does it make them understand your intentions, but it also prepares them for the future.

Talking about financial management lets them know you’re available to advise and guide them when necessary. Be open to answering questions about debts, <a href="https://goday.ca/location-services/calgary" target="_blank" rel="noopener">easy online loans</a>, compounded interest, and other general financial information.

Introducing your children to financial literacy as early as possible will help them make sound financial decisions. Raise a financially-empowered child!

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