How to Navigate Parental Financical Guidance and Personal Spending Decisions
Introduction
Teenagers often face the challenge of balancing their personal financial desires with their parents' guidance and restrictions. Understanding the reasons behind these restrictions and finding a way to communicate effectively can help bridge gaps and foster better financial understanding.
Parents' Financial Concerns
Parents are often concerned about how their children spend money, for several important reasons. One of the primary concerns is financial responsibility. By teaching you about budgeting and saving, parents aim to equip you with the skills needed to make informed financial decisions in the future. Additionally, the value of money is another crucial aspect that parents aim to instill. They want you to understand that not all spending choices are equal and that understanding the value of money comes from thoughtful spending rather than impulsive purchases.
Another key concern is your long-term goals. Parents often advise you to prioritize savings for future expenses such as education or emergencies, rather than spending on immediate desires. This is because they have likely learned from their own experiences about the consequences of poor financial decisions, and want to prevent you from making similar mistakes.
Embracing Personal Goals
If you feel frustrated or misunderstood, consider having an open discussion with your parents about your financial goals and desires. This can help bridge the gap between your perspective and theirs. For instance, if you are 18, you might be excited about earning a consistent monthly income through platforms like Inbox Dollars and Swagbucks. Alternatively, starting a real job that pays more per hour might be another route to explore. It's important to understand that while these platforms can be fun, a real job might provide a more substantial income and better professional development.
Learning from Successful Investors
To improve your financial knowledge, you can learn from successful investors like Warren Buffett. Buffett's approach to spending versus investing is a valuable lesson. He emphasizes the difference between spending and spending wisely. As you grow older, becoming a better investor and saver will be more valuable than impulsive spending.
Age and Legal Considerations
If you are under 18, you are considered a legal child and are under the control of your parents. They have the authority to control what you spend your money on. This is a legal fact, and understanding it can help you navigate conversations with your parents more effectively. For example, when our son wanted to buy a car at the age of 16, even though he had barely enough money to buy it, we said no. We meant NO and HELL NO because it was a death trap on bald tires. He didn’t have the money to repair or insure it, and he had no automotive skills. We didn’t want him to be stuck with a useless car in our driveway for years. Cars like that are cheap for a reason. Understanding the potential risks of impulsive purchases can help you make better decisions.
Communication and Alternatives
Instead of pushing through with impulsive purchases, it's often more productive to discuss why your parents do not want you to buy whatever you want to buy. By understanding their concerns, you can find alternative solutions that align with both your goals and their financial guidance. For example, if you want to buy a smartphone, perhaps you can find a more affordable model or explore leasing options. These alternatives can help satisfy your personal desires while also respecting your parents' advice.
Conclusion
Navigating your financial journey with your parents can be complex, but open and honest communication can help you achieve a better understanding. By getting to know your parents' concerns and finding appropriate alternatives, you can make informed decisions that align with both your personal goals and their guidance.