Teenagers need to be especially vigilant with their spending habits; poor decisions now could lead to problems later.
Money Management For Teens –For Better Future
It is high time one realizes the value and follows some simple steps.
Money Management Tips for teens
• Teenagers should be given a fixed pocket money which they can use for their personal use
• The teenager should be taught to keep an account and spend and save from whatever one gets… This will require preparing a personal budget by knowing the status of one’s finances, expenditure, income and other obligations.
• Parents should discuss money matters with young teens to make them understand the value of money. Most children know that money is required to buy their burgers, toys and books but they do not know the working of the finances
• In the late teens a person should start saving from whatever is available. Some funds should be put hidden at different places like in books or under the pillow… This will give financial stability later and also serve as an emergency bank in case of financial difficulties.
• Teenagers should be taken to the bank and explained the working and processes of depositing cheques, drawing money and other transactions. They can be of help in cheque writing.
• In case a teenager is living alone he should know that all bills should be paid on time. Late payment may cause penalties in the form of late fees and extra charges and also can lead to legal issues by the creditor, landlord or other companies.
Build A Better Future
The choice of money management for teens become habits that have an impact on the amount of financial freedom one has future. Those who are smart with money at this age are the ones who have started budgeting, saving and investing for the future. These youngsters are ahead of those who earn a lot, lead a lavish lifestyle, but have no savings. And suddenly they lose the job—they are at a stake because they have not learnt the art to live within their means and manage their finances well.
As soon as one starts earning one has to think of saving for future and the future of family. At this age one is burdened with responsibilities of starting the career and after that, starting a family, so ideal will be to plan for a secure future.
• It is essential to know the art of preparing a budget by simply keeping a note of the money received and the payments made.
• Save whatever is possible from the money in hand by giving priorities to the expenditure.
• Take interest in learning money management from elders.