How can you talk to your teen about your financial issues?

Families today have many financial issues to deal with. Changes in the family budget will affect the children, and teens should know why these changes are happening and what decisions the parents have to face. This is one way to instill financial responsibility in teens. Involve your teen in planning the family budget. Just like any other issues that involve teens, open communication is important, along with honesty. However, be careful not to cause your teen undue stress about money problems. Explain the financial situation briefly, so your teenagers will be aware of how these changes will affect them and what they can do to help.

A family meeting is a good place for discussing family issues in an environment that emphasizes communication and cooperation. Family discussions about money and finances will teach your teen about financial responsibility and setting goals. Encourage your teen to look ahead toward future expenses, like a car or college, and encourage your teen to think of ways to earn and save money. Family finance problems may be long-term or temporary, but encourage your teens to take part in the effort. Explain the consequences of making mistakes in money management and how to prioritize spending.

Make clear rules for the whole family, and suggest ways that your teen can save or help out. Teach your teens how the family income is divided, and let them come up with ways to keep tabs on their own expenses. You may be surprised at how understanding your teens are, and how helpful and willing they are to do their part.