Teenagers focus mainly on having fun and making the most of their time wherever they are. If you have teenagers in your life, you will find this information helpful for teaching them how to focus on learning important life skills.
Whether you’re a parent, tutor, or sibling to a teen, these tips on money management for teenagers will help you teach them best practices for future success. Money is an indispensable resource, so it’s important that teens understand it before becoming adults.
Track Expenses
Not every teenager has the same lifestyle, and some will pay more attention to expenses than others. But regardless of lifestyle, tracking expenses is an essential skill to learn. Keeping a weekly or monthly budget will help teenagers understand how to use their resources wisely.
Wants vs. Needs
Many people think of “wants” as luxuries because you don’t necessarily need these things to live or develop. Other things, like food and basic clothing, are “needs” because people need them to develop and thrive. Understanding the difference between wants and needs will help teenagers make better choices with their money.
Start Saving
There is no specific age at which a person must start saving for the future, but the younger someone can begin, the better. Teenagers like spending because, just like everyone else, they get an adrenaline rush from owning something new or having a package on the way. But teenagers with their own checking accounts tend to grow a sense of responsibility since they’re using and managing their own money. Plus, a checking account will give them a safe and reliable place to save their money.
Have a Goal
Saving money is smart, but there are better reasons to save money than just for the pleasure of it. When someone is making money, spending it might seem like a wrong move, especially when unnecessary. But having an end goal for those savings will help motivate your teenager to save. Money circulation is also important for a society to develop properly, and spending those savings eventually will keep this circulation going.
Be Self-Sufficient
When teenagers are learning to manage their money efficiently, it’s important for them to do so somewhat independently. Of course, they should have some guidance and help from more experienced sources, like a parent. But having someone fix every problem they encounter will keep them highly reliant on others and make it difficult for them to learn. Becoming self-sufficient with their money is the best way for teenagers to create their own paths.