Whether your teen is working a part-time job or saving up their allowance, they need to start thinking about money management, and how they can make their incomes go a little bit further. Here are some tried and true tips to pass along to your teen about saving money.
Track Spending
It’s hard to save your money if you don’t know where it’s going in the first place. Encourage your teen to track spending for the next month to find out. Have them list everything they buy and how much it costs. At the end of the month, they may be amazed at how much they spent on things they don’t actually need. Once they have an idea of where their money is going, they can work to pare down their expenses.
Develop Financial Discipline
Don’t encourage your teen to carry a lot of cash with them. They’ll be much more likely to make unnecessary purchases if they always have extra money in their wallets. Teach them that when they are tempted to make a purchase, to ask first, “do I need this right now?” Most of the time the answer will be no, and they will hang onto their money for a little bit longer.
If your teen is saving for a big purchase, teach them how to deposit money into a savings account regularly so they aren’t tempted to spend it. If they use a debit card, have it connected to their checking account, but not a savings account. This way they won’t be tempted with a spur-of-the-moment purchase.
Cut Down Expenses
Once your teen knows where all the money is going, it will be easier to cut on expenses. Little things do tend to add up to a lot at the end of the month. That $2 for coffee several times each week amounts to more than $200 each year. Pass along these tips to be frugal, and your teen’s savings will grow.
– Eat lunch at home (easy for homeschoolers), or if you’re working away from home, pack your lunch.
– Make your own hot beverages, and carry a refillable water bottle with you.
– Carpool, walk, or ride your bike when you can. Gas can be expensive if your teen drives a lot.
– Think before you spend! Clothes, shoes, movies, and music can all add up quickly. The modern world is designed with the consumer in mind. If you don’t need it, don’t buy it!
Save Money on College Now
It’s never too early to start saving money on college expenses. Even something so simple as earning dual credit in high school can add up to thousands of dollars in college savings. Help your teen get off to a great start in 2017 by enrolling in Dual Credit at Home. Our Study Plans can help your teen earn as many as 51 college credits before 2018 dawns!
How your teen manages money today will give them more freedom in the future. Teaching your teen to invest money and spend wisely will help them take better care of themselves as they journey toward independence.
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