Want to teach your kids how to manage money properly?

Here are 4 perfect tips

Proper financial management is a significant tool in adult life and should be passed on to teens.

How do you talk to them about the topic "in their language" and what ideas can help you?

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In collaboration with Bank Hapoalim

21/12/2021

Tuesday, 21 December 2021, 11:00 Updated: 11:41

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Wise financial management can greatly affect your youth (Photo: ShutterStock)

Our modern world is full of temptations. Abundance is everywhere and young people, who live on social media, are exposed to a huge variety of options and often also to a "reality" that has been specially put together to look perfect.

There are many benefits to this ability, getting to know new worlds in a comfortable and simple way, but it can also create problems when it comes to financial management and for that, parents must know how to put emphasis. Our children see everything, and want everything, and we must have the right toolbox and regulate them, so that we do not find them and we end up with excessive and unnecessary financial expenses, such as we have no way of dealing with.

But how do you talk to boys and girls about money in a way that will really "talk" to them, one that will not sound or feel disconnected to them? For many teens, prudent financial management is a "parent" concept, but it's important to share with them at this age, when they themselves are starting to make money, so that they can learn what to do with it and begin to truly understand household and family issues, such as budget, expenses and income. And more.

To help you with this complex task, we enlisted the help of Bernin Mordi from the Center for Financial Growth at Bank Hapoalim, who has collected some tips for you. You will find that once you help them, your children will respond accordingly and hopefully, they will show responsibility when it comes to money, theirs in particular and the family in general.

"First of all," Ranin emphasizes, "before the talks and explanations, it is important to understand that the children look at us and see how we behave, in the supermarket, in the mall, on trips, etc. Therefore it is important that we act and act according to the message we want to convey to them." "Before buying, ask ourselves at every purchase if it is really something we need, reduce expenses when there is less revenue, check promotions and make sure they are really worthwhile and worthwhile and so on. These are all messages that can pass on to children from our daily conduct."

So what's Renin's tips?

These are the tips you should know.

Ranin Mordi from the Center for Financial Growth (Photo: Bank Hapoalim)

Tip One: Explain to them the value of money.

"Money does not grow on trees" is a phrase that every parent probably said sometime (and also heard sometime, when he was little), but that is not a satisfactory explanation. An open family conversation will help teens understand the value of money. Talk to them about issues like how much money they have, what they want to do with it and from that, how much they need to save. Set goals and dreams with them and through them, build a common budget.

Sit down with them to compare prices online and look for promotions, while explaining the considerations for choosing when the budget is one of them. Do your children have a cell phone? This is a great opportunity to learn to read accounts. Every month, go through the mobile phone bill together and check if there has been a deviation from the surfing volume, how the bill was paid and when.

Already at this stage of the discourse it is important to emphasize to them that the intention is not really a complete cessation of classes, expenses for clothes, telephone, trips or leisure time - but only maintaining a balance and a reasonable ratio between income and expenses. It is not easy to detach the emotion element and tell our child "it can be bought, but it is not", but it will help them grow and understand the value of money correctly.

Tip two: Open a "young account" with them and / or make sure they have a credit / debit card

. Too many teens are reaching the age where they become self-employed, and suddenly discover that they have no idea how to conduct themselves financially and what the implications of a bank or credit account are. So, already at this point, when you are still by their side to monitor and direct, introduce them to the various options and let them start managing themselves.

Along with them, check which bank is best to open a young account, what benefits this type of account offers, what restrictions it helps to place and how to properly read the account status, go over card expenses and manage controls. Believe us, in the age of apps, in about a second your kids will already be in control of all the functions and options and know exactly how to get to any given figure and item of relevant information. You really do not have to wait until the age of 18 to open an account or issue a credit / debit card. These are tools that not only help to manage money properly, but also build maturity and personality.

Thankfully, most teens are not in a situation where they have to support the home and family so working while they are still students is a kind of "bonus", money they earn and feel in the flesh how much effort should be put into it, which also helps them better understand its value.

But of course we do not want it to come at the expense of studies, because it will frustrate both them and us and therefore, it is important that you are involved and help them understand how many hours they can spend at work throughout the week and when to stop and focus on studies.

If they are happy with the work and the money that comes in thanks to it, and at the same time continue with the regular school routine, you too will benefit greatly.

Take care of their account and credit / debit card and help them plan their working hours (Photo: ShutterStock)

Tip Four: Allocate out-of-pocket expenses.

Alongside or in their workplace and if you have the option of course, pocket money allocation is a great tool. Your kids will know how much money they are getting each week / month and will be able to prepare and build a budget for themselves accordingly, for the various expenses they want. They will be able to learn to save money or start paying attention to promotions, to get more out of their money.

That is, these are the golden rules of proper financial family discourse and using them may help you greatly in an important task - imparting information and understanding to your adolescents. If you have other questions or topics that you are not sure about, or if you would like to deepen your knowledge on the subject - visit the Bank Hapoalim Financial Growth Center website, a house of knowledge and tools accessible to the general public, free of charge. At the Financial Growth Center website you can hone or renew your knowledge on many issues, essential to the proper conduct of each of us and all of us together as a family, to do "homework" and pass things on, to the younger generation.

To the website of the Bank for Hapoalim Financial Growth Center >>

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