How to Prepare Your Teen for Financial Success

The days are long, but the years go fast. One day she is an adorable 5 year old in pigtails and the next second she is graduating from high school and headed to college. It is frightening to imagine sending our “babies” out into the world, but your credit union is here to help you and your teen be prepared for financial success.

Teach them how to budget:

One of the BEST ways to prepare your teenager for financial success in life is to teach them how to budget. A budget is simply a plan for your money. Every dollar should be accounted for. Knowing where your money goes creates power. Your teen now has the power to make necessary changes in their life.

 

Find a passion that pays:

We teach our children from an early age in life to follow their passions and chase their dreams. But what happens if their dreams don’t pay the bills? Students are walking out of college with an average of $29,800 in student loan debt. Someone with a degree in humanities will have a harder time paying off that student loan than someone with a degree in engineering.

One of the best things we can do for our teenagers is help to guide them into careers that combined their passions with career opportunities. Is your teenager interested in protecting the environment? Have they considered environmental engineering? Does your daughter love dance? Has she considered a business major with a minor in dance theory giving her the opportunity to run a dance studio or work in marketing for a dance company? You can also seek advice from school guidance counselors or professionals in their chosen career fields.

 

Establish Credit Now:

Every adult needs credit. When you apply for a job, they check your credit score. You need a loan? Yep, they check your credit. And even when you apply to rent an apartment, they check your credit. But great credit is earned not given. A great way to give your child a step up is to help them establish credit as a teenager. A student VISA card with a super low max balance helps your teen establish credit in a safe environment. You can work with your child to learn how to use that credit card and how to maximize their purchasing power as an adult. Learn more about our $500 max starter VISA credit cards.

 

BCFCU is here every step of the way to help your child grow into a financially successful adult. Be sure to check out our Live Freely Young Adult Club. In addition to offering a starter VISA credit card, we also have online banking, mobile app, online bill payment, student loans and a first car discount program! Check out all of the details today!

Reference Resources: hamiltonproject.org