Teaching Your Black Teen Financial Literacy ~ One of the most underestimated practices is the teaching of basic financial principles to children and teens.
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 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.
The odds are that your parents provided minimum guidance regarding financial issues. You can help your teen to avoid the economic challenges that you’ve faced.
I grew up in a home with my great-grandparents. I inherited my work ethic from them. They even taught me about multiple streams of income and proper budgeting. They did not teach me the power of investing, especially the power of compound growth and diversification across assets.
My team and I put this compact guide together as a starting point to help parents introduce financial principles to their children. While this guide is not comprehensive, it can be instrumental in setting the stage for a successful financial future. You may learn something along the way as well.