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Make the conversations fun, playful, inclusive, respectful, positive and engaging, she explained.
She provided several tips to help guide conversations around money with young children.
Eaton suggested that parents allow their children to manage parts of a budget.
This can also be an ideal time to introduce goal-setting concepts.
Eaton recommended that parents help children understand what savings goals are and how to achieve them.
This makes it essential for parents to teachdigital financial literacy.
She said that teenagers can also learn important lessons about how careers and finances are related.
A parent can discuss how career choices impact financial independence.
Its also important to explore career planning,potential career pathsand the earning potential of different careers.
Parents can also encourage teens to start building up an emergency fund.
A reasonable goal could be $500, but it depends on you and their situations, Makowem explained.
Get them to draw up a list of what they consider an emergency.
Teens can contribute tocertain budget categories, like power, groceries and luxuries like Netflix.
Eaton suggested that parents act as advisors during this transition phase.
Makowem recommended that parents help older teens create a budget by going through their monthly expenses and income.
Ensure they prioritize saving and investing as expenses in their budget, she said.
Makowem suggested several other ways for parents to support older teens as they transition into financial independence.
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