Teaching Teens How to Save Money
Saving money is not a high priority for most teens. Teens even need to be smarter about their money. Try these tips so your teen has the practical money knowledge.
Monthly Budget: Parents start their kids on a allowance but they should try a monthly infusion of cash. Give them a specific amount each week instead of $20 bills you give them. It will teach them to spend wisely.
Choosing to Save: Make your kids put ten percent of any gift money or what they have arranged into a savings account. Over time they will be happy upon doing this, especially when they hit eighteen.
Clothing: Instead of paying out of pocket for every clothing item, try a practical budget. Put money on a prepaid debit card and this will give the kids power to decide what is more important buying shoes or the items they need.
Thrift: Everyone loves a good thrift store. Having your kids shop at a thrift store can teach them to appreciate vintage styles and savings. Not only can they purchase clothing but other popular teen purchases like gifts, books, and DVDS.
Job: Getting a paycheck will teach teen about saving and what the teen will do with the rest is up to them.
College: Get your teen excited for college by giving them information about cost of college. Talk to them about student loans and help them get encouraged to save money.
Identity Theft: Make sure to warn your teen about how important it is to remember their Social Security and bank information. Having someone steal all their hard working money can have a serious negative effect on your teen.
Retirement: It may not be on top of teens minds but helping them look forward and understand how saving can be a big impact on their future will make teens understand saving. They have time, the earlier you save the more money they will have for retirement.