How to teach teens about money, wealth, and budgeting

most adults expect teens to worry about their clothes shoes dating maybe even their Chipotle orders but they probably don't expect them to be worried about money according to Wells Fargo's money study 83% of teenagers actually want to be better with their money so how can adults help set them up for Success joining me now we've got Emily Irwin Wells Fargo wealth and Investment Management managing director of advice and planning great to have you here on set with us Emily great to be here Brad so let's dive into some of these results here more teens they they want to be smart about their spending about their saving what did the survey really show and tell about how they're setting themselves up for Success yeah well you've already mentioned 80% of them are really focused on wanting to manage their money better and that is an incredible statistic what's interesting is it's in direct conflict with the fact that most adults shy aggressively away from wanting to talk about money and so we have to as adults and as parents really set that standard for them to be have these conversations other and so with that in mind I mean what's that what's the kickoff point for some of these conversations I mean it can it can be awkward it can be dicey when you're saying hey sit down junior I want to tell you about how you can really make sure that you're managing your money right yeah let's bring the abstract and the concrete together for kids that's really important and so we can start small whether it's things like showing some of the finances that you might go through on a regular basis so I think one of the great ways to do this is by instituting both one time expenses and recurrent expenses with teenagers and kids so for example it might be easy to be able to set standards for how do we save for a bike or a new laptop but we also have to complement that with what the reality is you know we like to save for vacations we also know we need to save for rents and utilities we also need to make sure that our kids are able to save for cellone plans or maybe streaming services how do you balance the two and you can help them start that by being able to help them set a budget for example and so teens right now does it seem like especially with finstagram fin talk that they're more excited to talk about money and financial planning they absolutely are they're out there they're talking about you know how do we save money how do we budget how do we make the most of our dollars and they want to understand even Concepts that might be complex such as what is compounding you know how do we how do we make money on our money and so as parents what one of the fabulous things is to really set them up for succcess is to be able to sit them down and say okay you have $1,000 from your summer job for example if you have an interest rate of 6% you're going to have after one year $1,060 great news you do that in year two you're going to earn $636 so all of a sudden you're earning interest not just on your original amount but you're earning interest on your earnings as well that can exponentially grow introducing kids at a young age to that concept of money growing on top of money is really important compounding is is part of the three tips that we want to give people as well here you've got three actionable tips for kids who are or just young adults that are ready to go to college and planning for that as well what are they well savings and compounding super important we definitely want to make sure we touch upon that understanding credit this is where I think kids for the first time you turn 18 you might be on a college campus and you're approached about open up your first credit card don't have that be your first introduction to credit let's talk about credit and starting it early explain what credit is really made out of and why it's important it's going to help you borrow money lenders are going to want to let you loan M loan money to you two you're going to be able to do it at a more advantageous rate most likely and on better terms potentially they look at credit history credit um the amount of credit to what you have outstanding and then of course your ontime payments that is critical maybe even consider having your teen as an authorized user on your card so they can start building credit and then finally budgeting at WS Fargo we have a a life sync in the mobile app experience where you can upload pictures get inspiration that is a fabulous way to start thinking about managing both your everyday expenses checking in with them intentionally but also understanding how are you going to be able to fund those longer term goals like spring break maybe oh yeah indeed a big funding topic there Emily Irwin who is the Wells Fargo wealth and investment managing management managing director of advice and planning thanks so much for taking the time here with us today my pleasure

Channel: Yahoo Finance

Views: 914

Keywords: Yahoo Finance, Personal Finance, Money, Investing, Business, Savings, Investment, Stocks, Bonds, FX, Currencies, NYSE, Equities, News, Politics, Market, Markets, Yahoo FInance Premium, Stock market

Id: OtBFONCQJcY

Length: 4min 32sec (272 seconds)

Published: Thu Apr 25 2024