As rental prices continue to rise, teaching teenagers how to manage their money is becoming increasingly important. In a recent interview with CBS New York, Roy Paul from the nonprofit organization Cents Ability shared valuable tips for parents and teens on budgeting and financial management.
Paul emphasized the importance of starting financial education at a young age. He explained that many young people lack the knowledge and skills to manage money effectively, which can lead to financial difficulties in the future. Parents can play a crucial role in teaching their children about budgeting and financial responsibility.
One of the key tips Paul shared was the importance of setting clear financial goals. By helping teenagers envision what they want to achieve with their money, parents can encourage them to make responsible financial decisions. This could include saving for a car, college, or even a first apartment.
Additionally, Paul stressed the value of discussing everyday financial decisions with teenagers. By involving them in the family’s budgeting process and explaining the reasoning behind financial choices, parents can help their children develop a better understanding of money management.
Finally, Paul recommended that parents encourage their teenagers to work and earn their own money. This can help them learn the value of hard work and the importance of saving and budgeting. By allowing teenagers to handle their own finances, parents can help them become more independent and responsible with money.
Overall, the message from Paul and Cents Ability is clear: teaching teenagers to manage their money is crucial in today’s world. By starting financial education at a young age and involving teenagers in financial decision-making, parents can help their children develop essential money management skills that will serve them well into adulthood.
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