Reply to If your teens are very responsible with money, how did you teach them that?

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Reply to "If your teens are very responsible with money, how did you teach them that?"

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[quote=Anonymous]It comes down to personality.

I have zero limits on spending for our 16yo. But my kid is miserly. DS doesn't care about having the latest devices, nor clothes, nor much of anything. He skipped meals on a school trip because he didn't want to spend "extortionist $" (his words) on food. When he was younger, he asked once to make an in-app purchase as a birthday treat .. and never asked for anything like it since.

The one financial thing we do do is to make sure DS is involved in discussions about major purchases and investing. We don't hide any financial discussions from him. For ex. we presented him the pros & cons of keeping a property to rent out vs selling it and reinvesting the proceeds; we worked out a variety of scenarios in excel, talked about potential taxes, profits and depreciation and let him weigh in on it. One day he'll have to do the same, so I think it's good to talk through these types of decisions.

Also, since he was little, we've gradually put him in charge of investing his trust account. Once a quarter or so, we curate a short list of companies to invest in & he decides how much he wants to put where. I sign into the brokerage (as trustee) and then have him execute those stock purchases while we watch. The only rule we have is that the account maintain all long positions based on dividend reinvestment. He's definitely seen what 16y of disciplined savings, steady reinvestment and compounding can do and is very happy to keep it up.[/quote]

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