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Five financial tips for teenagers

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If you have several teenagers in your family, you have too much to worry about. I understand, I have experienced it. On their way to adulthood, there are many problems that need you to worry about, including sexual safety, drugs, alcohol abuse, college, etc. At the same time, you need to worry about money.

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Here are a few tips to help you guide your children to take responsibility for their own financial situation.

1. Get a job.

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Today’s children have many things to do. They have PE, music and many other courses in school. So it seems unwise for your children to go to work. However, they can learn a lot of valuable things from their work, which is very helpful for them to step into the society in the future. Let children make money by themselves – some money parents don’t need to give them anymore – which is good for both parents and children, and can help children learn to rely on themselves.

2. Open a current account.

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If your children do not have a current account by the age of 16, you should go to the bank to open one, so that they can learn how to operate a current account slowly. Take some time to explain the basic concepts of current account to children, such as how to maintain the flow of funds, how to cash a check, and how to check with the bank at the end of the month.

3. Open a separate savings account.

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Opening a savings account can help children understand what saving is. Put the money they want to buy into this account. This may require changing the way you spend on things for children.

4. Apply for a credit card.

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If your children have learned to manage their current accounts, the next step is to help them apply for a credit card with a smaller amount, preferably signed by their parents. In this way, children will always have a fund that can be used for emergencies, but also can cultivate their sense of responsibility. It should be noted that parents should monitor their children’s consumption to see what they have bought. The most important thing is whether they have paid in full every month. The purpose of this is to train children to be responsible people, not to help them upgrade their credit limit. Carefully monitor children to prevent them from owing bills they cannot afford.

5. Prepare for college tuition.

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Encourage children to develop and implement financial plans for college tuition. In fact, most children should bear some college expenses independently, even if it is only for communication. Teach children how to save some cash, and teach them how to earn money by working during summer vacation or college.

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By helping children set up and manage savings and credit card accounts, and guiding them to find a part-time job, they can effectively help them become useful talents. Once they leave their hometown to go to college, there will be few opportunities for parents to teach their children, but you are still their main financial source. We must let them know that money is hard won before they leave home.

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