Money: Kids are growing up so fast… so show them how to look after cash

PREPARING teenagers for adult life involves tackling a range of tricky topics – and money is definitely one of them.

As they prepare for adulthood, it’s so important that young people are taught how to avoid the financial mistakes which could blight their future.

Yet many teenagers say their elders have never discussed money issues with them, according to credit checking company ClearScore.

If you’re looking for a way to lightheartedly broach the subject with your children or grandchildren, why not mention some of your own embarrassing financial memories?

You could mention that time your debit card was refused in front of friends, for example.

They’ll quickly learn not to repeat your botch-ups.

Remember, small chats about money as you go about everyday life can make all the difference.

It’s never too early to educate children about the importance of saving sensibly and the dangers of getting into debt.

Here are some tips from ClearScore to help get you started:

Highlight the importance of a personal budget

A vital part of financial independence is learning to make and manage your own budget. Make the most of free online budgeting tools to help them get started.

Suggest getting into a savings habit early

Regularly putting money aside is a good habit at any age. But if you’re trying to help your teenager save, encouraging them to get into the habit early helps make saving seem more routine.

Try talking about the need for an emergency fund using examples that are relevant to their life.

Maybe they’ve just got their first car, so making sure they have some money saved in case it fails its MOT or breaks down would be a smart move.

Ensure they know how to handle credit

Turning 18 opens up lots of new possibilities, including taking credit or store cards.

Credit is an important and relevant part of managing finances, but it’s crucial to explain how to handle it responsibly and to stress the need to have a plan for repaying credit.

Explain what a credit score and report is, and why it’s important

Negative information, such as late or missed payments, can become a black mark on your credit report for around six years.

It’s important to explain that, if this happens, it can make it harder to get credit in the future or mean someone is offered a higher interest rate.

Talk about staying safe online

Identity fraud happens when a fraudster finds out enough information about you that they can pretend to be you.

This means they can open accounts, get hold of official documents, buy goods or even take out credit in someone’s name without their permission.

Highlight the importance of password safety and examples of scams youngsters may be exposed to.