Teenage is the period when the kids are more focused on the outside world and less inclined towards education. However, it’s on the parents how to manage this stage of a metamorphosis of your teens. If you want to help increase your child’s focus on education, one of the best ways would be to involve them in fun educational activities.
My elder cousin has a 15-year-old son and I loved the activities that she tried with him. While he enjoys the activities thoroughly, he is more informed on a lot of other things that they won’t learn in school.
Your teen must be in high school now and at this point, they must have a goal in life. They must have a clear understanding of what they want to pursue in future and where they see themselves 10 years down the line. So, make them write a “letter to themselves” just casually. Ask him/her to reflect on his life and think about his aims in life.
While doing this activity they will also get an opportunity to open up about their future plans without being the pressure of college applications or any SATs. Now, keep the letter with you and surprise your child once they complete their graduation to see how far they have come and accordingly analyze their goals.
Learning about personal finance at this age is extremely important for your teen’s future. The early they have a better understanding of finances and savings, the more particular they will be with their savings in future. They should be able to differentiate between savings accounts, certificates of deposits or money market accounts. Ingrain the concept of personal finance in them with this activity.
Explain to them about the different types of savings accounts.
Ask them to research online to find interest rates offered by different kinds of accounts for two local banks and compare them. Help them identify and understand the Annual Percentage Rate (APY) that is, the amount of interest you earn in a year.
Based on the comparison they should be able to understand which bank is better to invest.
Now help them learn to calculate their earnings on the investments for a year that is, compound interest.
Ask them to use the same formula for 3 years and 5 years term.
Make them understand that interest rates fluctuate based on the market conditions and the bank’s performance. So, they should check back intermittently with the bank for the current interest rates.