For good or bad, peer pressure is part of teenage life.
Kids influence each other greatly as they navigate adolescence, and it can be incredibly tough to forge your path as a teenager. While young people are affected by all kinds of peer pressure, one area of development can lead to serious consequences as an adult: money-related pressure. If kids begin to try to “keep up with the Joneses” at a young age, it can be really difficult to cut out that behavior as an adult. Fortunately, there are ways that we can help our teenage kids deal with these challenges.
Marketers are ruthlessly effective.
They target vulnerable populations, those who are not fully independent in their thinking and spending habits. Like teenagers! These marketing companies appeal to the idea of being “cool,” and especially being sure to fit in – because everybody else is. Whether it be smartphones, clothing, video games, or even cars for older teens, a lot of pressure is created for kids to fit the mold. Even though their Samsung base model phone may still work perfectly fine, the iPhone X is new – and all of the cool kids have it. Teens are faced with a lot of pressure to buy, buy, buy.
At what point does this stop?
Throughout college, into young adulthood, and beyond, many people will continue to spend beyond their means instead of within them. Many experts cite this as the single biggest obstacle to wealth. People may bring in larger and larger paychecks over time, but these spending habits are so ingrained that they cannot accumulate wealth. The goal becomes to live the high life: buying the latest, most expensive things, booking luxury vacations, outdoing your neighbors. Instead of saving and investing money, many do their best to keep up with the Joneses, costing their financial future as a result.
For teenagers, though, this pitfall can be avoided. Parents can teach their kids important lessons about how to overcome peer pressure that they certainly will face, and instill positive spending habits for now and the future. Above all else, we adults can model good money management and spending within our budgets.
The most important lessons, including those about financial responsibility, begin with clear communication with your teen.
It is key to establish that comfort zone with your kids, where they know they can trust you to not judge, as well as to create a mutually-respectful interaction. Explain to teens that advertisers and marketers can be sneaky, and they are directly trying to get you and your friends to buy their products. It is good to have some skepticism when watching a commercial or seeing an ad online. If kids realize that the latest gadget won’t make them cool, that can go a long way into avoiding overspending on expensive products.
Another way to help your teens rise above peer pressure is to encourage and celebrate leadership within them.
Point out bold, independent people – whether they are friends, celebrities, relatives, entrepreneurs, or someone in the news – who are making positive changes and influencing others in a good way. When kids make their own choices, and not just doing something because that’s what everyone else is doing, call it out. Congratulate them. Let them know that they were born leaders and that success will come by confidently making decisions that they know are right. Hopefully, as teens turn into adults, this idea will stick. Instead of buying the latest, most expensive car just to impress others, they will choose one that fits into their budget. Real wealth can be built, not by constantly keeping up with others, but by choosing to not care what others think about your spending, and living within your means!
Set your teen up for financial success and confidence!
Our one-of-a-kind Budget Workbook for Teens is the perfect interactive and exciting financial learning tool for your child.
One of the most dangerous, most powerful forms of peer pressure that our teenagers face today is through social media.
90% of teens are on one or more social media platforms, and they are on them a lot! Peer pressure becomes much more complex. Instead of a group of kids influencing others to “get on board” and keep up, even if it is financially irresponsible, now you have a whole continuous stream. Photos and Instagram posts show off people’s material milestones. All that matters to teens is how many “likes” people got, and how many friends or followers they may have on social media. Someone with a ton of influence posts something that may not be financially responsible, like their $1000 shoes, a picture of their exclusive tropical vacation, or their penthouse party in Las Vegas. And guess who that affects the most? Young adults and teens.
So, what can parents do about it? Monitor teens’ social media, closely. It is okay to demand access to kids’ online activity, especially if that is established when kids first venture into the world of social media. If kids are let loose into the online world, without adult supervision, they can be drawn down a negative path pretty easily. And this is not just about money. This peer pressure can have a serious impact on body image, self-esteem, and the ability to think independently. As kids get older, parents can loosen their control and monitoring (not completely, though!) to show their children that they trust in them to do the right thing. More than likely, teens who trust – and are trusted by –their parents, will make responsible decisions in money and life.
As with anything in parenting, helping teens overcome peer pressure is a fine line. You try not to be a “helicopter parent,” but you can’t be hands-off, either. Keeping lessons and discussions focused on financial responsibility can be a great approach. If teens can learn at a young age that “keeping up with the Joneses” is a dangerous habit to get into, those lessons will shape the adult they become. Peer pressure is all around us, at any age. Teens, though, have so much more pressure on different levels. The guidance that we parents can give them during these years is crucial, more so than ever.
