One of the most important lessons we can teach our teens is how to win with their money. National Best-Selling Author and Personal Finance Expert with Ramsey Solutions Anthony O'Neal joins us with his top three money lessons for teens. His book is called "Debt Free Degree" - The guide to getting your kid through college without student loans...
1.Money Comes from Work.
- Work is a necessary skill for life.
- Your teen needs to learn that money doesn’t grow on trees. You work, you get paid. You don’t work, you don’t get paid.
- Work teaches them that money has value, and it builds their character.
- Have your teen get a part-time job and start saving for big purchases, like a car or even college.
- If you can swing it, you can set up a match program and match whatever they save to help out with bigger purchases.
2.Save, Give, Spend.
- Once your teen has an income, you need to teach them how to use it.
Save: Teach them the habit of saving early. If you don’t teach them how to save, they’re likely to head off to college and rack up debt. A portion of whatever they make needs to go to savings.
Give: You want your kids to be generous with their money. Let them tithe at church with their own cash.
Spend: You won’t have to teach your kids how to spend money! But you want to teach them to be intentional with their spending and that giving and saving come first.
- These are a few basic budgeting principles that will set them up to be intentional with their money.
3.Take Debt Off the Table
- If you don’t teach your kids about money the world will. And the world will teach them that debt is the only way to go to college and that credit cards are normal.
- Debt doesn’t open doors, it closes them.
- There are three ways to pay cash for college:
Save money: Send them to a college they can afford and stay in state. Look at community colleges.
Find money: Your teen should apply for scholarships like it’s their job.
Work: Your kids can work in college and cash flow it.
Learn More: AnthonyOneal