There is a common belief that teenagers only worry about their phones and friends. However, recent research from the 2022 Junior Achievement Teens & Personal Finance Survey reveals that over 54% of teens actually feel unprepared for their financial futures. One way parents can help alleviate their kids’ concerns is by addressing their money fears.
Uncovering Your Teen’s Money Fears
A good starting point for understanding your teen’s money fears is to reflect on your own feelings about money, according to Michele Paiva, a licensed psychotherapist based in Downingtown, Pennsylvania. It’s important to recognize that your own attitudes and behaviors towards money will influence your children, regardless of what you tell them. For example, if you and your partner constantly argue about spending habits, your teen may develop insecurities about their own financial management skills.
Once you have looked inward, it’s time to engage your family in learning about money. Paiva suggests playing Monopoly as a fun way to initiate money-related conversations. Through the game, you can explore questions such as, “Do I want to spend all of my money on property? If I land on someone, do I have enough money for rent? If I go to jail, do I have enough money to get out?”
These conversations should extend beyond the board game. LaQueshia Clemons, an accredited financial counselor and licensed clinical social worker, recommends asking scenario-based questions to gauge where your teen stands financially. For example, ask them what they would do if they had $100 today. Based on their response, you can delve deeper into the conversation.
Understanding Common Money Fears
Timmesha Butler-Davis, a licensed independent clinical social worker, frequently discusses money fears with the teens she works with. One common fear, especially among those growing up in poverty, is the fear of not being able to afford the same things as their peers. This fear leads to stress, worry, and feelings of judgment, which can significantly impact their self-esteem.
Teens also fear not being able to earn enough to sustain themselves. Often stemming from poverty as a form of chronic trauma, this fear can result in severe detachment or maladaptive relationships with money. Some individuals may hoard money to avoid ending up like their parents, while others may impulsively spend all their money.
Developing a Healthier Relationship with Money
It is important to note that reversing your teen’s money fears cannot happen overnight. However, with time and effort, you can help them gain confidence in managing their finances. One approach is through affirmations, which provide encouragement. Clemons suggests using affirmations like, “I am in control of my success,” tailored to each individual’s definition of success.
Furthermore, Butler-Davis emphasizes the importance of providing financial literacy to address your child’s specific money fears. This may involve teaching them about budgeting, opening a savings account, or introducing them to credit cards. Allowing them to shadow your financial planning activities can also be beneficial.
Finally, for teens who equate their value with the amount of money they possess, it is crucial to reorient their perspective. Paiva emphasizes that personal value should not be dependent on wealth. It is essential for teens to understand that their worth as individuals is not tied to their financial status.
This article was originally published by The Associated Press and written by NerdWallet.
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Elizabeth Ayoola writes for NerdWallet. Email: [email protected].
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