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Money Management Tips for Teenagers

Money Management Tips for Teenagers

According to the study “Teens and Personal Finance” from 2010 Junior Achievement/Allstate Foundation, 25 percent of teenagers were in a position of “not very sure” to “not sure at all” when concerning how to budget their money. It may be a difficult task for a teen to think realistically about money and budget, but developing money management skills is one of the most beneficial things when they get older. Here are some useful tips for teenagers to better manage their money.

1. Create a budget.

The first thing in money management is creating a solid budget. No matter if you have an part-time job, work during summer vacations, or receive allowance from your family, you should always write down the income and allocate them into different categories of spending, from month to month. This is an important skill that you can put yourself ahead of the curve in the adulthood.

2. Set your goals.

You should set a realistic goals about how much you want to save per month. Also, you can put down the number of items you want to buy. You can get some magical thinking more easily by doing this, and reconsider the cost when a fancy car, a new product or an outfit catches your eyes. Once you write them down, you might find you are not desired as much as before. Another possibility is, you may find places to juggle your income, expenses and monthly savings so that you could purchase the item later.

3. Be accountable.

Share your budget plan and goals with others, no matter it’s your parent or your friend. Just be accountable. Others can discuss with your money situation and might have better ideas and strategies that you may never think of.

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