Teenagers commonly feel a lot of anxiety when it comes to their financial futures. Many worry that financially life will be harder for their generation compared to previous generations due to factors like inflation.. There is extreme pressure to be financially secure; however, issues such as high cost of education, job instability and rising costs of living makes it increasingly harder. On top of the pre-existing stressors, it is not uncommon for teens to feel embarrassed from the lack of household income or even shameful when talking about money.,
A survey done in the United Kingdom found that nearly 20% of teens feel an overwhelming sense of anxiety about money and more than half worry finances will worsen as the years go on. A study in the United States found that almost half of teens feel judged when discussing their finances and many often lie about how much money they have or spend. Additionally, social media only contributes to financial embarrassment by influencers showing the glamorous sides of life, making teens feel like their incomes can’t compare.
The key to helping teens with their financial worries is to have open and honest conversations about money and how to properly save. Teens should be included in family budgeting and learn how to handle money in real life examples. Families giving their children small tasks like budgeting for groceries or saving up for something they want to buy can help develop a healthy relationship with their outlook on finances. A majority of teens don’t know much about managing money, only adding to their fears. Many rely on their parents for financial advice but parents may also feel uncomfortable discussing money with their children due to their lack of understanding. This can create opportunities for parents to step up and educate their kids about finances, positively benefiting them long term. Open conversations about financials shouldn’t have to be restricted to advice and addressing the emotional side of money can help. Teenagers often pick up how their parents feel about money, especially if there’s stress or arguments around it. If money causes tension in teens’ home life, it is not a surprise that it can lead to anxiety. It’s important for parents to remind teens that their worth is not based on how much money they have or don’t have. Guiding them to understand can help them reduce the pressure they may feel.
Teaching teens gratitude is another way to address common anxieties about money. Focusing on the good that money can buy: food, clothing and shelter, that some may not be able to afford, can begin to assure them to feel less stressed about money. Starting small saving habits, even with tiny amounts, can also make them feel more safe and secure when it comes to their future finances.
Some teens may be dealing with bigger financial issues, like growing up in poverty or a low income household. These teens in particular are more likely to develop unhealthy habits, like overspending or hoarding money. In these kinds of circumstances in particular, it’s even more important for teens to be exposed to basic money skills, like saving or budgeting, to help manage financial stressors.
The best way to ease teens’ financial worries is to create an environment where they can talk freely about money and finances. When parents lead by example and have open, honest discussions about finances, it can help teens feel more confident and prepared for the future. By making these conversations a normalized part of life, it can help future generations to develop skills they need to feel financially secure in the future.
