As kids age, they need financial guidance, and they need to establish their own financial habits. The teenage years are full of opportunities to spend money, as well as many peer pressure situations that can influence how much teenagers end up saving. Learning and practicing good financial habits as a teenager can set a person up to have a strong and smart financial future; so whether you are a parent looking out for your teen, or a teen trying to navigate the world of money, there are definite habits that can help you (or your teen) secure a solid financial future. This article is directed toward teens, but can also help parents who are hoping to guide their teens toward smart financial choices. Budgeting, saving, and making other wise financial decisions can help encourage strong financial decisions in the future. Below are five financial habits that are ideal to establish during the teen years.
1. Make a budget
The first thing you should do if you want to be financially savvy is to make a budget. If you get an allowance each month, then you should factor that in. If you have a part-time job, you should also factor that in. In your budget you should include anything that your parents expect you to pay for yourself. The term ‘budget’ might seem more appropriate for your parents, but if you want to learn about money, making a budget is the best way to start. Don’t be afraid to ask your parents for help if you need it. Here is a sample budget sheet you can alter to fit your circumstances; obviously, if you are not yet in college, you can take that part of the budget out. Just maintaining a regular monthly budget will help prepare you for your financial future.