If you are a teen or (have a teenager in your life), the following tips will be useful in establishing sound money practices early in life leading to stronger financial stability over time.
Bank accounts and debit cards: Teens should learn how to open a bank account, deposit and withdraw money, and use a debit card. They should also read about and understand the fees associated with these services.
Budgeting: Teens can start learning to budget by tracking their income and expenses. This will help them see where their money is going and make sure they’re not spending more than they earn.
Saving: Teens should start saving early, even if it’s just a small amount each month. The more time saving, the more compounding interest has to work. There are many ways to save, such as putting money in a savings account, buying a savings bond, or investing in a mutual fund.
Credit: Teens should learn about establishing credit and how to use it responsibly. This includes understanding how to build a good credit score and how to avoid debt problems.
College planning: If they plan to pursue higher education, teens need to start thinking about college early, including how they will pay for it. They should research different financial aid options and start saving for college as soon as possible.
Getting a job: Teens can start earning money by getting a part-time job. This is a great way to learn about responsibility, money management and feel a sense of accomplishment.
Starting a business: Some teens are interested in starting their own businesses. This can be a great way to learn about entrepreneurship and make money. However, it’s important to do your research and create a business plan before getting started.
Investing: Teens can start investing early, even with a small amount of money. There are many different investment options available, such as stocks, bonds, and mutual funds. It’s important to talk to a financial advisor before investing to make sure you understand the risks involved.
There are many resources available to help teens learn about financial topics. They can talk to their parents, teachers, or a financial advisor. They can also find information online and in books and magazines.
Here are some additional tips for teens:
Talk to your parents. Your parents may be a great resource for learning about financial topics. They can teach you about their own experiences and help you make sound financial decisions.
Do your research. There is a lot of information available about financial topics. Take some time to read books, articles, listen to podcasts and search websites to learn as much as you can.
Start early. The earlier you start learning about financial topics, the better prepared you will be for the future.
Don’t be afraid to ask for help. If you have any questions about financial topics, don’t be afraid to ask your parents, other family members, teachers, or a financial advisor for help.
By learning about financial topics and making smart financial decisions early on, teens can set themselves up for financial success in the future.
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Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching or call 716-712-2060.
