Teenagers Have No Idea What Money Actually Means
Are your teens actually ready to manage their own money? From online shopping to managing payment apps, our kids are handling money more than ever before. In this Sidewalk Talk, Russ Rivera offers practical advice on how parents can help.
Transcript:
Hey everybody, I'm Russ Rivera, founder and president of Voice Vault Management, and welcome back to Sidewalk Talk. If you've got a teenager at home, as I do, there's a good chance that they're already making financial decisions. The question is whether anyone's taught them how.
Well, I hope I have well, but nonetheless, teenagers today are making financial decisions constantly, buying things online. They have payment apps. Many of them are working their first jobs. But most of them have no real sense of what it costs beyond what's on the price tag. They don't know what rent looks like. They don't know how credit works or how fast debt can pile up. And very few people were teaching because we assumed they'll figure it out.
But I've sat across from enough adults who are still cleaning up habits they picked up at 16 to know that that's not a fortune strategy. The move with teenagers is to stop protecting them from the numbers and start sharing them. Show them the utility bill. Walk them through what your rent or mortgage actually costs. If they're earning a paycheck, help them set up a simple budget so they can see where the money goes. Talk about credit, not to scare them, but so they understand what borrowing really means before someone hands them a credit card in college and the spending goes haywire. And if they've got a goal, whether it's a car, paying for something at college, or something else, sit down and help them map out what it takes to get there. That kind of planning is a skill they'll use for the rest of their lives.
Once again, I'm Russell Rivera. It's about to start raining, and your kids are going to manage money on their own sooner than you think. The question is whether or not they'll have a foundation under them to do so. If you want to talk about preparing your family financially, visit us at www.voicewealth.com. Thanks. And Adam and I will see you next time.
Russell D. Rivera, CFA, CFP®, is the Founder and President of Voice Wealth Management, an independent financial services firm serving professionals, entrepreneurs, and families in New York City and beyond. Focusing on helping clients make informed decisions about saving, investing, and financial planning, Russell is committed to providing a customized approach that reflects each client’s unique priorities and experiences.
