Saving money is something that every person should know how to do and the habits to saving money should be learned as a teen. Knowing how to save money will help the teenager continue to save money as he or she is getting older and into their adult years.
Ideas To Help A Teen Save
There are many ways a teen can save money but I order to start saving they need to have a way to earn the money first. Even if the teen is very young such as thirteen or fourteen it is still possible that they can earn money through obtaining a job or jobs. They can cut the grass, wash cars, dog walking or babysit just to name a few ideas. It is recommended that a teen ask family members, friends or neighbors for these odd jobs and not to go knocking on doors. This can be dangerous to the teen.
A second idea to help your teen save money is to open a bank account. The general rule is that if the money you earn is within reach you will likely spend it instead of saving it. If the teen puts his or her earned money into the bank it will be safe. If the temptation to spend is not there it will help with the saving process.
A third recommendation for saving money is to ask the parents for help. Many teens will find that they have trouble saving on their own. Parents are more than willing to help their children out and show them the right way to do things. The parents can help them by having their name also put on the bank account so that the teen cannot have access to the money unless the parent is there or the parent may just open an account without the teen’s name on it. Once the teen sees how easy it is to save the money and see their bank account growing in size it is a good motivation for them to keep saving and they can switch the account to only their name.
It is important that the parent curb the shopping habits of the teen at an early age. Many teens will start to shop on an unlimited budget because their parents allow it. Often times the parent will give the child their credit card and tell them to have fun. This is not teaching the teen responsibility. You can help to teach responsibility by shopping with them and showing them how to look for sales and good buys or if that is not a possibility set a budget on the credit card and have them stick to it.
By teaching teens how to save money at a young age it will prepare them for a well rounded financial future. This will benefit him or her when they are preparing for college, purchasing a car, getting married or moving out of the house on their own as well as when trying to obtain a loan. By showing financial responsibility with saving money they should be able to get any type of loan they want from a secured loan to an unsecured loan. The decision will be all theirs.