18 hours ago
- Business
- Hamilton Spectator
The peer pressure on your teen to spend money is intense. Here's how to support your kid
Teens in Canada are spending between a few hundred dollars to more than $1,000 a month.
Makeup and skin care. Concert tickets. Iced dragonfruit lemonade. Sports gear. Sneakers. Ubers.
The funds are coming from part-time work, parents and grandparents. Summer jobs tend to bring in even more cash for them.
The pressure on teens to spend money is intense and gets more expensive by the year.
It's a daily battle with the latest social trends, tech gadgets, and the unavoidable pressure and FOMO over the Insta- and TikTok-worthy lives of friends and influencers.
Parents know that peer pressure is a cash-draining adventure and most have dealt with their own adult-version of it, too (vacations, cars, renos).
No matter the condition of their own finances, parents do want to help their teens manage the social spending trap, without losing friends in the process.
When done thoughtfully, downsizing can shore up retirement savings and ease pressure on one's
Here are a few practical tips to support teens and teach financial literacy in the process.
No surprise, it starts with truthful talk about the peer pressure itself.
A study from Mydoh and RBC pointed out that teens are interested in the idea of financial independence, and it shows teens also want to improve their money skills.
As spending pressures rise, the timing is perfect for parents to step in and talk about basic budgeting principles.
It can be a conceptual conversation at first — dividing money into the big three buckets: spending, saving and giving — and then advancing the idea with a template, app or tracker so the teen can see precisely where the money is going. The goal is to show your kids they can enjoy some money now while saving for the future, too.
In fact, this balancing act drives a positive money mindset free from the guilt parents are all too familiar with.
Parents can encourage their kids to spend time with friends who share similar values regarding money.
Suggesting low-cost or free activities promotes connection without the pressure to overspend.
This is also an opportunity for parents to model how the friends they keep are aligned with their personal values.
Instead of telling their child to ditch their expensive (and super annoying) friend group, encourage them to hang out with friends who share similar financial values — a lifelong skill worth mastering.
Parents can guide their teen to identify what is truly important.
This opens a dialogue to discuss the differences between needs and wants, helping teens figure out what brings actual value to their life, and what's going to make them truly happy. Spoiler alert. It's rarely another trip to Sephora.
It might, however, be learning to invest in experiences, like a once-in-a-lifetime camping excursion, a class on photography (to take better pics for The Gram) or a concert in the park with friends.
Memories last longer than any fashion trend, and they'll still be cool when the trend fades.
There's budgeting, and then there's actual spending limits.
These traditional limits often focus on the amount of allowance or a paycheque. But, what about getting maximum value for the money they do spend?
Teaching teens how to stretch their money is a life skill, and opens the door to learning how to comparison shop, use coupons, hunt for seasonal discounts, and explore the world of second-hand markets.
The goal is to show teens how to stay on budget, and get the things they want in the smartest way.
It's the art of captaining their own financial ship, completely in control, allowing for smooth sailing through their social calendar.
They can do more with their friends if they are clever with their purchases.
The importance of money in a relationship is right up there with sex, trust, family and work.
Parents, you know the peer pressure is high and that it is hard on many fronts, including mental health.
Stay present for your kids and teach them how to make good money choices so they're not broke by Friday.
And, if they mess up, which they will, create space for them to learn and grow.
As you support them, you'll likely pick up a few more money tips of your own!
