SeaComm Federal Credit Union OFFICIAL BLOG

4 Money Management Tips for Teens

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When it comes to financial awareness, teenagers aren’t typically experts. Continue reading to learn four effective ways you can teach a teenager about managing money!

 

 

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Set them up with their own account. Start with a checking account for their daily spending, and a savings account for your teen’s future goals. To achieve the best balance of control and independence, open an account that provides you with joint account holder status with full access – while also letting your child monitor and manage the account online or with their smartphone through SeaComm Mobile 4.0.

 

 

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Teach them the importance of saving. It’s important for your teen to know that saving up money is a necessary part of life. Whenever they receive money from jobs, allowances or gifts – encourage them to pay themselves first. A portion of their money should be applied to savings for future use, with other portions used for bills and flexible spending.

 

 

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Give them the reins. Instead of paying for gas, clothing and other things for your children…provide them with a certain amount of money at set times throughout the year. Let them know they’re in charge of making it last until their next “payday.”

 

 

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Set an example. You can’t just talk the talk…you also have to walk the walk. Money habits in children are formed by the time they’re 7 years old – which means they most likely picked up their spending styles from you! If you’re spending money carelessly, they’ll eventually notice. Make efforts to set a healthy example for them, and they’ll be much more likely to follow it as they grow older.

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