Did you know that over half of Americans kicked off 2021 by focusing on their financial wellness? What’s more, according to a recent study by the National Financial Educators Council, teens said they also want to make learning about money management a priority but only half can pass a basic financial literacy test.
So as January comes to a close, we recommend taking a few minutes to check in on your goals — and if you haven’t already — spend some time talking to your kids about money, too.
We know these conversations can be difficult, so if you’re looking for a partner to help kickstart your teen’s financial journey, look no further. Step was built from the ground up to help improve the financial future of the next generation. As part of this commitment, we’ve created a step-by-step guide to help teens and families tackle every aspect of their financial education.
To help get you started, we recently sat down with Marc and Heidi D’Amelio to hear more about how they approached teaching their daughters (Charli and Dixie) about money management and what they’ve learned along the way!
Marc: I received my first credit card at 18 years old and quickly learned that using credit for frivolous purchases is an easy way to get into debt. Like many young people, I didn’t have anyone in my life to explain the benefits and pitfalls of debt, and how to use credit wisely. However, as I learned and matured, I used credit to achieve goals and pursue my dreams.
Heidi: I, on the other hand, didn’t establish credit early enough. I didn’t know how important it was until I actually needed credit and then I had to play catchup as I started the slow process of establishing it.
Our biggest challenge was finding creative ways to get them excited about knowing what to do with their money after they earned it - saving, spending and donating. For many people (teens especially), money isn’t the most exciting of topics but it’s a really important one, so finding ways to get our girls engaged in the conversation was key.
When we learned about Step and the financial education they offer to parents and teens — we knew we wanted to get involved — knowing we could help other parents get the tools they need to teach their kids about money management was really exciting!
We like how it helps teach kids about financial responsibility by creating spending limits — only allowing them to spend what you put in their account — and notifying them of each debited transaction in real-time. It creates teachable moments as you help your kids think about the in-flow and out-flow of money.
Don’t wait to educate your kids on finances - use Step to learn together and help your teen work towards achieving financial independence sooner!
We hope you’ll continue to tune in as we break down everything from modern-day budgeting techniques to creative savings strategies over the next few weeks. In the meantime, check out our Money 101 section dedicated to banking basics.
Photo credit: Flannery Underwood