Tag: family

Budget, Credit

Financial Topics for Teens

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.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

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.

Budget, Parachute Services

Family Savings Strategies

Family savings efforts can be a great way to reach your financial goals faster and easier. By working as a family team, you can motivate each other, build stronger family ties, and benefit from shared resources.

Here are some ideas to get you started!

  • Set goals common to all. The first step is to get everyone on the same page and agree on what you want to save for. This could be a short-term goal, such as a family vacation, or a longer-term goal, such as buying a boat or even a home! Once you have a common goal, you can start to develop a solid plan to reach it.
  • Create a budget. Once you know what you’re saving for, you need to create a budget that will help you reach your goal. This will involve tracking all your income and expenses to see where your money is going and identify areas where you can cut back. Then you can direct your newly found savings toward your family’s goals.
  • Open savings accounts for all family members. This helps everyone feel included and provides great lessons and good money practices for younger children and teens. 
  • Automate savings. One of the best ways to save money is to automate your savings. This means setting up a recurring transfer from your checking account to your savings account each month. This way, you’ll be saving money without even having to think about it. If you have teenagers or young adults who earn a paycheck, they can automate their savings too into a savings account through direct deposit. If you have younger children, they can earn a weekly allowance and place, at least part of it, in a savings account.
  • Set up family savings challenges. A family savings challenge is a fun and motivating way to save money. There are many different types of savings challenges available online, so you can find one that’s right for your family. For example, you could do a 52-week savings challenge, where you save a different amount of money each week. Or you could do a no-spend challenge, where you commit to not spending any money on certain things for certain periods of time. Make it fun and competitive. 
  • Have family savings meetings. Once a month or so, sit down with your family and discuss your savings goals and progress. This is a good time to re-review your budget, make any adjustments as needed, share tips, stay motivated and celebrate your accomplishments.
  • Make saving money fun. For example, you could have a family competition/contest to see who can save the most money in a month or award small prizes for the most creative way to save. Or you could reward yourselves with a special treat when you reach a savings goal.
  • Save change. Use cash whenever possible and save that change in a jar or other space labelled with your goal such as “2025 summer vacation trip.”
  • Consider selling items. Each family member could contribute some unwanted items to a group garage or yard sale to help fund the family goal. Children could host a lemonade stand. Teenagers and young adults could babysit or offer to rake leaves, shovel snow or run errands for neighbors to earn extra money.
  • Reward good grades or reading goals. Consider contributing more funds to the family savings pool if your children attain certain grades in school or read a certain number of books outside of school. 
  • Consider savings matches: If your younger children or teenagers or young adults save $5, consider a 100% ($5 contribution) or 50% ($2.50) match so their savings grow faster and they are encouraged to save even more!   

By following these suggestions, you can develop strong family savings strategies and reach your financial goals and future plans faster!

Parachute Credit Counseling offers group financial education and one-on-one services to help you budget your money, get out of debt, understand and build your credit, and more! Call us at 716-712-2060 or visit us at www.parachutecreditcounseling.org

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/