Teens, Money and Graduation – Pathways to Organization
Yes, that title is scary! The thought of giving our teens money seems to be a not-so-smart idea and yet many of them are graduating at this time of the year.
But if we realized that by the time the average teen is eighteen, they will be on their own, either off at college or perhaps living in an apartment and working.
Since this month is when most high school graduations occur, I thought it perfect timing to share some thoughts on teaching our children the concept of money management.
Action Plan
- Considering how important credit profiles have become, parents should help their children establish a good credit history early.
- Add your child as an authorized user on your credit card when they are still in high school. You are still responsible for the bill but they will begin to see how to use a credit card. Having them also on your checking account as using checks is very important.
- Make sure you talk to your kids about credit and what’s in a credit report and score. Help them understand that credit can be a great financial tool if you manage it well. “As a young person graduates from college and moves into the workforce, they’re going to need a credit history established so that they can qualify for the new apartment, so that they can get a car so they can get to and from work,” says Rod Griffin, director of public education at credit bureau Experian.
- If your family is planning to apply for a student loan to finance your child’s college, explain the importance of repaying that loan.
- One of the worst things that can happen to a young person is to enter adulthood and given opportunities to obtain credit and they don’t understand that taking on debt can have years of negative implications if they manage it poorly.
- Teach your children that each time they go out your door they are to choose to do good, reject the bad, do right and reject the wrong. If we aren’t teaching them these basic moral principles, no one else will.
- Money is referred to throughout the Bible. It is important to know how to manage it so that we can give to the Lord and take care of our families.
Manna from Heaven
“Master, behold your mina, which I kept put away in a handkerchief; for I was afraid of you, because you are an exacting man; you take up what you did not lay down, and reap what you did not sow. He said to him, ‘By your own words I will judge you, you worthless slave. Did you know that I am an exacting man…why did you not put the money in the bank, and having come, I would have collected it with interest? Luke 19: 20-23
Note: During that period a mina was equal to about 100 days wages or nearly $20.
