There are only a few things that are guaranteed to make anyone’s life harder. The most common include:
- Choosing the wrong spouse
- Not paying attention to your health as you age
- Financial challenges
The vast majority of financial challenges are avoidable. But most teenagers lack the basic literacy to avoid the most common financial difficulties. As a parent, teaching your child about money in general, budgeting, debt, credit, and investing can be some of the most important lessons you provide.
Imagine if you knew everything you know about money when you were 18 that you know now. How much different would your life be?
Financial literacy is the knowledge and skills needed to handle your personal financial resources effectively over your lifetime. It’s also the ability to apply those skills. You’re not financially literate if you know the information but are unable to apply it consistently.
Odds are that your parents provided minimum guidance regarding financial issues. You can help your teen to avoid the financial challenges that you’ve faced.