3 Things Your Teen Can Learn from Paying the Bills This Month

Taking on the financial responsibilities of adulthood provides children with a sense of independence. However, for an individual who has never been accountable for managing a sizable sum of money, learning to balance rent or a mortgage, car payments, student loans, and credit card bills can easily become overwhelming.

Prepare your homeschooler for financial success in the real world by helping you pay the bills for a month or two. All the money is still coming out of your account, but by putting your child in charge of the process of paying the bills, he’ll learn a variety of important financial skills and life lessons, including the following:

The Impact of Conserving Resources
While buying groceries on a budget teaches kids how to shop smart, having your homeschooler pay the water and electric bills opens his eyes to just how much that half hour shower or evening of video games costs. The impact will be even more profound if you extend the activity over the course of several months and make a conscious effort to reduce your consumption of resources during that time.

Responsible Spending Habits
A survey conducted by the American Bankers Association and Dove Consulting found that 53 percent of consumer purchases are now made with some sort of card, a statistic that has increased by 10 percentage points since 1999. Especially if your family uses credit cards regularly, involving your student in the monthly payment process provides excellent opportunities to teach him about navigating statements, the impact of impulse purchases, and the perks of paying monthly bills in full.

How Credit Works & Why It’s Important
Involving your teen in monthly car and mortgage payments opens the door to practical conversations about loans, interest rates, and the importance of establishing good credit. If your credit card company includes a free credit report with your monthly statement, consider examining and discussing it with your child. The more real world exposure your homeschooler has to these financial concepts, the less stressful future home and automobile purchases will be.