How To Save Money For Teenager (Four-Step Plan)

HOW TO SAVE MONEY FOR TEENAGER

Are you interested in how to save money for teenager?

You’re not alone! Do you want your teenager to learn how to save money and maybe even earn a little extra? I thought so and you are in the right place for that. Your teenager is about to embark on their journey into adulthood. They will be stepping away from home, leaving the nest, making their own decisions and choices. All of this sounds exciting but it can also be scary for both parent and teen. Here are some tips to help your teenager save money during their teenage years.

Here Is How Teens Can Save Money:

 

What’s Ahead:

1. Before you can save money you must have some…so get a JOB!

2. Open a saving account!

3. Keep track of your monthly expenses!

4. Make Saving a Priority!

 

 

 

1. Before you can save money you must have some…so get a JOB!

Before a teenager can save money they must have some money coming in. So, the first and most important thing to do is get a JOB! There are two types of jobs that teens should consider.

The first type of job is a part-time job. This could be at a grocery store, bowling alley, fast food restaurant, or even babysitting. These sorts of places will hire teens because it is very difficult to find workers who are willing to work during the summer or on weekends. These jobs are perfect for teenagers because they are easy to get and the pay is great!

The second type of job is a full-time job. This could be at a grocery store, fast food restaurant, movie theater, or department store. These jobs usually require prior experience but if you are lucky enough to get one of these positions you will make more money go farther than your part-time job. 

How To Save Money For Teenager

2. Open a saving account!

Open a Saving Account for Your Teenager The best way to teach your teenager about saving is to give them the opportunity to do so. Even before you open a savings account for your teenager, you should discuss with them the importance of saving money. Also, talk about the different types of savings accounts and how interest works.

Then together decide on an account that makes financial sense for your teen. TIP: Make sure the account has a small minimum balance, which will allow you to avoid monthly service charges. When your child applies for a bank account, don’t give them too much money to open an account.

This could lead to careless spending and cause them to dip into their savings without thinking twice about it. It’s also important that they understand how interest works. If they deposit $500, but they only earn $25 in interest per year, they won’t get much value out of the account and will be more likely to lose interest in it.

Once you have opened the account, encourage your teenagers to use it and withdraw money from it ONLY when absolutely necessary. This will help teach them discipline when it comes to spending their money and will have them look forward to depositing money into their savings accounts in the future.”

 

3. Keep track of your monthly expenses!

It’s important for teenagers to understand how to track their expenses monthly.  This will help them as they learn about budgeting and knowing where their money is going is a big part of that. 

It’s also a good idea to teach them how to track their income as well so that they can learn how far their money can go.  Because this will give them a better understanding of how it works when they are adults and have to handle their own finances.

There are several apps that you can use to help your teenager track their expenses and income, such as

1) Expense Manager 

2) Mint

3) iXpenseIt (Android/iPhone/Android Tablet/Windows/Mac)

4) Daily Expenses – Manage Bills, Income & Expenses (iPhone/iPad). Or you can keep track of expenses the good old-fashioned way.

 

4. Make Saving a Priority!

Hey! I’m a big believer in saving. I’m not talking about putting away $10 a week for retirement here, but putting aside money to buy things you want.

It’s a great way to learn about personal finance because it helps teens learn the difference between wants and needs. TIP: Even if you have a job and make some money on your own, you should still open up a savings account at your local bank or credit union. They’re free and are better than keeping your money under your mattress or in a piggy bank!

Here’s how:

1. Pay yourself first. You might be familiar with this phrase, which means that you should set aside money for savings before you pay for anything else. So if you get paid $100 this week, put $20 in your savings account before spending any of the other money.

2. Start small. Small amounts can add up to big amounts over time, so don’t think that you need to save thousands of dollars to be successful at saving. If you can save $5 per week, that’s a good start!

3. Set goals for yourself and write them down! When you put something into writing it becomes more real—you’re more likely to stick to that goal when you write it and can see it.

Summary

We can all pretty much agree that teens like to shop. Whether its clothes, electronics, or home goods, it can seem like there’s nothing that they love more—except, of course, money.

But while shopping may be a fun pastime to which they’re accustomed (and thanks to their parents), saving money is something that few teenagers know how to do.

That’s right: according to a 2016 survey by TD Bank and Gallup, only 1 in 4 teenagers in the US reports saving money on a regular basis. The good news is that saving isn’t impossible; it just takes some effort. If you dedicate yourself to saving money—even if you start small—you can be the one who ends up with way more money than the average teen. Then you’ll wonder why you didn’t start sooner!

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