Being a teenager can be challenging. They’re in the beginning stages of adulthood on top of dealing with loads of homework — and don’t forget a social life. Your teen may also be faced with temptations that don’t fit in your budget. So, why not help your teen practice the many benefits of saving? Taking control of how your teen manages their money can allow them to pursue financial opportunities such as that new bike or TV they’ve always wanted. Here are some tips to help get your teen get started.
1. Talk About Their Goals
When helping your teen practice saving, you might want to start out with establishing some goals. Ask your child, What do you plan to save for? Is there anything specific they want? Maybe they want to go on a vacation with the family, or maybe they just want to save for the future. Whatever it may be, consider writing down each goal and work toward saving for each. Try to save for one at a time and cross off each goal as your teen completes it. This will motivate them to continue to save money and manage their finances better in the future.
2. Have a Savings Jar
To make saving a little more fun, consider having a savings jar. If it is a goal to go on a family vacation the following year, then encourage each family member, including your teen, to participate and contribute to the jar. You might want to consider having your teen contribute $20 a week to start out. If they don’t have a fixed income, then encourage them to help out around the house or boost up their grades at school. When you see they are doing a good job, you can contribute for them. This will not only encourage them to save money, but also practice discipline and responsibility at home and in school.
3. Keep a Spending Diary
Keeping a diary of your teens’ spending will help them understand the importance of money. This will also help them contribute to their savings account or savings jar. If you see they are spending a lot on eating out with friends, then encourage them to cut back and put that extra money toward their savings. Maybe you can use the holidays coming up as motivation to keep contributing. If they reach a certain number in their savings, then they will be rewarded during the holiday season. A little motivational boost can go a long way.
4. Encourage Them to Make Money
No matter the age, there are always jobs out there to help your teen boost their savings. Encourage your child to help out the neighbors with yard work or take up babysitting. Having your child start working at a young age can be very rewarding; it can encourage them to get comfortable with independence and help them manage their own money. The second they see cash start coming in, it can help motivate them to keep working towards their financial goals!