My two teenagers are looking forward to their graduation soon. My daughter Cai is on her last semester before embarking into college life, while my son Miko is set to start senior high school. This is an important chapter in their lives, as they are both entering the adulting stage, as Gen Zs would say.
As a parent, I want to be able to guide them well in this stage, and one aspect I feel needs focus is their financial journey. It helps that we maintain a close relationship, where we regularly have talks about how their day in school has been, especially now that things have gone back to normal and they get to see their friends in campus again. They always have new stories to share, excitedly so, and these include their friends’ and their own big goals for the future. These talks not only give me a chance to stay connected with them, but also clue me in on how I can guide them in preparing for the future, money-wise.
Here are some ways that we can guide our kids in their financial adulting journey:
- Allow them to decide how to spend the allowances they’ve saved, but model the way for them.
There is no hard and fast rule on how our teenagers’ allowances should be spent but showing them how we as parents manage our expenses has a bearing on how they will handle theirs in the future. Their attitude towards money will depend on how much they’ve learned about money matters from us. As such, it’s important to educate them about how money is earned, teach them how to make wise choices on what to spend on, and continuously guide them.
Then, allow them to make their own decisions so they can apply the lessons. You just might be surprised at how they’ve become more conscious about dividing their allowance for barkada gimmicks or buying a new outfit.
- Let their gadgets be a tool for learning business concepts.
A common concern among parents is how teenagers are always glued to their phones or tablets more than any other generation. Being digital natives, their gadgets are practically their BFFs, a valuable communication tool that provides them with access to their barkada and keeps them updated on what’s in and what’s new.
This may seem to be disadvantageous for some, but we can turn this around by encouraging them to learn about simple start-up businesses and entrepreneurship concepts online. This may lead to new ideas that could turn into money-making opportunities. They can even discuss this with friends who have the same interests as they do. Who knows, these conversations just might be the start of a lucrative online business for your teenage entrepreneur.
- Teach them to be mindful about their purchases.
Whenever my kids and I are at the mall, it’s sometimes hard for me to say no when they want to get stuff on a whim. As a result, we often end up with clutter at home – which also means more items to clean up! This has led me to remind them about being mindful of their purchases.
To do this with your kid, first, ask their reasons for the purchase and let them check on similar items they might already have. If they feel strongly about the purchase, require them to set a schedule to check on their stuff first and sort unused items then recycle or reuse. Understanding the impact that recycling has on the environment may cause them to reconsider. That said, it is okay to grant their requests every now and then, especially if they need to shop for a school project, a new hobby they may be passionate about, or a book that will allow them to discover new things.
- Learn to trust them.
We may be the ones teaching our kids about handling their finances, but us parents need to learn as well – learn to trust them, that is! A cousin who is into child psychology once told me that letting my kids handle their money even at a young age would help them become responsible and give them a sense of accountability in knowing what is enough and what should be saved.
I put this into practice and indeed, the outcome is positive. My son and daughter have a good grasp of how to divide their allowances, which they do so in three parts: they spend for food and transportation, set aside money for weekend hangouts with friends, and add to their bank accounts and deposited at the end of the month. Trust can surely go a long way.
- Introduce them to financial products.
I believe that the teenage years are the best time to introduce our kids to financial products such as insurance and investments, since they now have a basic grasp of money management and are ready to take the next step. Get them to start early by introducing them to SUN Safer Life, a simple and affordable life insurance plan that is ideal for first-time insurance buyers who are budget-conscious. You may also encourage them to start their investing journey by opening their first mutual fund account with a Sun Life Prosperity Peso Starter Fund. You will need to help them open their mutual fund account since they are still underaged but the process is fairly easy and they can start investing with a minimum investment amount of only P100.00. Hopefully, this will be the start of robust financial portfolio which they can nurture as they grow older. Check out the steps in opening a SLAMCI Online investment account.
These are simple and practical ways that I help my kids in their financial adulting journey and may work for you too. Starting them early on their way to financial preparedness and independence will surely benefit them in the long-term, especially as they start earning their own money. Drawing upon my own financial journey, understanding the importance of handling my own income and budgeting back in my 20s has made an impact on how I manage my personal funds. It wasn’t easy then, but today, with technology and tools that are available 24/7, there are many ways our kids can explore at their own pace with our continued guidance.
This is an exciting time for our kids. And, as bittersweet as it is to accept that our babies are now grown-ups, we should also welcome this with open hearts and minds, supportive of their pursuit of their own brighter future.
Looking for more inspo? Discover the different ways the new generation can pursue financial freedom via https://www.sunlife.co/Financial-Independence-Month. #FreedomToLiveBrighterWithSunLife
This article is written by Lalie R. Novero.
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