Simple Ways for Teens to Save Money
Teaching teenagers the basics of money spending is a privilege for many parents. Of course, teens enjoy shopping and eating as they spend some cash. Usually a movie theater is a teenager’s pride and joy; that person will likely spend so much money to see the latest releases. Sometimes teens may spend too much money, and they ask their parents for more.
What if they want to buy a car or attend college? If so, they will need to understand the value of saving money, and use it wisely. Teens can discover the advantages of handling finance positively, which can soon be paid off big time.
Use a savings account
Opening a savings account for your teenage children is a simple approach to have them accumulate their earnings. Make it a savings account rather than a checking account, because a checking account may send them off to a spending frenzy. Tell the teens to make use of the savings account by putting their fair share of change regularly. If they have jobs or if you offer them allowance, advise them to put a portion of their earnings into the account on paydays.
Whenever teens purchase movie tickets or clothes, there are generally discounts available. Many department stores have discounts created just for students. Tell your teens to use those discounts. It is the same situation with movie theaters. A lot of theaters have special discounts or clubs which will enable teens save some cash.
Priorities or the 'wants'?
It is natural for teens to visit movie theaters to see the latest films. They enjoy going to music stores to pick up albums or music cards. What are the priorities they may have, especially for those interested in college? Books, supplies, tuition, room and board are things that must be looked at first.
Teach your teens that priorities are something that can be used for emergencies. They can be for car service charges, if for some reason their car breaks down and needs to be fixed. Video games, expensive Air Jordan shoes, and a new HDTV are not considered priorities. They are only 'wants' and should be purchased sparingly.
You can carefully explain to your teens the difference between ‘wants’ and ‘needs’. Wants may be clothes when your teens already have enough; needs can be something like a car for transportation. Teach the teens to use a good proportion of their earnings for needs more often. Planning ahead helps, too. Have your children to write down their needs, and purchase only what was planned.
Teenagers need to learn the advantages of saving money. It can help them reach goals, which may be as far as graduating from college. Give your teens a careful one-on-one advice about budgeting. They deserve to listen, and they deserve to understand about it.