Resource provided by SavvyMoney
Author: Chris O’Shea
Tips to Help Your Teen be Savvy with Their Money
If you have a teenager at home, hopefully, you’ve been teaching them good money habits for years. Now that they’re older, set them up for success throughout life with more in-depth financial goals. Here are some things to try with your teenager.
Learn How to Earn
One of the first money goals for your teen is to learn how to earn and manage their own money. Encourage them to apply for jobs so that they learn the process of working for a paycheck. If it’s their money — their spending and saving — they’ll be much more likely to take it seriously.
Learn How to Save
Teach your teen to set up a high-interest savings account. Shop around for the best options. Consider credit unions and online banks to maximize your interest savings.
Learn to Budget
Before they get that first paycheck, sit down with them and help them create a budget. Set up sections for fixed and discretionary spending. Be sure to include a section for savings, both long and short-term.
Learn to Set Goals
Now that the budget is in place, work with your teen to craft it based on their goals.
- Maybe they want to save up to buy a car.
- Maybe they want to head to the beach next weekend with their friends.
- Discuss their long and short-term goals in detail, then make the budget align with them.
Do One Thing: Help your teen create a budget that works for them. It’s a simple yet vital financial tool that will serve them well throughout life.