For many of us, financial planning means trying not to have too much month at the end of the money. In this chapter, I’d like to explore with you some ways to teach your high school kids about moving forward financially, especially when they have their own small income.
Better yet, find a way for them to feel that they get to do this instead of feeling that they’ve got to do this. You want to teach your kids that having money is a privilege, no matter how much or how little they have. Money is a form of power, but it needs to be treated properly or it will just go somewhere else. Teach your kids that while most people are vague about their finances, that’s not how it works in your household. You can even attach a reward to this new responsibility. For example, put a little bonus in their allowance if they write down their spending. If they don’t write down their spending, then it’s up to you to think of some appropriate loss that they must suffer as a result—in addition to the loss in financial knowledge they’ll already suffer. The key is to be fair and proportionate in terms of both the rewards and the consequences, and then keep your word.