How to converse with your teen about finances

A mother and her teen daughter having a conversation about finances.

We know so many of us wished that school had provided us with the knowledge to be better prepared as adults in maybe a lot of ways, one of which was when it came to dealing with finances. Financial literacy is extremely important to set yourself up for success. If you are thinking of having a conversation with your teen about finances and introducing them to money management, we have a few pointers to help you out.

1. Give your teen an allowance

First, to help them better actualize the concepts, consider providing them with an allowance (for doing set chores around the house), if they are not working. Hence, having a steady stream of income that they work for will help them have a better understanding of the value of each riyal.

2. Discuss their financial goals

From there, you and your teen can have a meaningful conversation about finances, and more importantly, goals they may have. You can ask if they have something specific in mind. For example, your teen might want to make a big ticket purchase or invest their money. This will allow you as their parent to aid them in setting and planning reachable and sustainable saving targets.

3. Introduce ways of investing their money

Provide them with real-world examples of what they can do with their hard-earned money. Perhaps (if you deem them mature enough), you can sit them down and explain how you have invested your own money or suggest ways that they can do that too. This could be a great gateway to exploring different investment methods.

4. Have important conversations that will teach your teen the need to be prepared for difficult times

When times are tough, having a conversation about money is not always the most pleasant. But, as your teen becomes more mature, they will eventually enter the job market. In a blink of an eye will become adults themselves.

Helping them prepare for difficult times like a recession will set them up for success. If they start saving now, they’ll have a nest egg ready in place should they ever need it. This is one reason why we believe teaching them about financial literacy early on is needed.

5. Use apps like FataFeat to help with teaching your teen important financial concepts

Finally, you and your teen can use the FataFeat app to help them better visualize and learn these important concepts. As they begin to think about spending and saving their money, we want to make learning easy and fun as well as something they continue to seek out the more savvy they get.

We truly believe that it is never too early to start investing and thinking about these important concepts. Our platform allows for micro-savings and investments. Our family payment app acts as a great introductory step to learning key concepts in money management.

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