If you haven't already, it may be time to have the talk with your teenager. The talk about money. As kids grow older, their needs and wants grow more expensive. But, not all kids are money-wise. Before they go off to college, it is important they know how to budget their own money before they get themselves into debt.
Macaroni Kid Alpharetta-Roswell-Milton talked to Tracy Tanner, executive director at Wealthy Habits to get some savvy tips on teaching your teens about better money habits:
When is the right time for teens to get jobs? Teens should focus on getting experience and not a paycheck, and they can start that pretty early. Volunteering and internships are great experiences that will likely turn into future opportunities that a job at a fast-food restaurant might not. It also looks much better on a resume and college application.
What tips would you give teenagers for budgeting? Save first and spend what’s left. This is an important habit to build for future success that most adults have trouble doing.
How can parents be involved with their teens money management? Parents don’t often want to admit mistakes, but this is the biggest mistake of all. Be honest and open with your kids. Learn together instead of trying to teach them yourself. Signup for a workshop or take a class. Do an investing simulation (investopedia has a free platform) together and make it a competition.
What are some simple tips for teens on saving money:
- Set a savings goal and figure out how you will achieve your goal.
- Spend towards your savings goal before spending on other things.
- Check in regularly. As you see your balance grow, you will be more determined to reach your goal.
- As you spend your earnings, consider how long (after taxes are taken out) you had to work to pay for the item.
- When you run short on funds, focus on making more money instead of saving less. Work extra hours, mow a lawn or wash a car, etc.
What advice would you give to college bound students on money? Stay away from credit card debt. When you don’t have enough money to pay for something you want, don’t buy it on credit. If you don’t have the money “now,” what makes you think you will have it later. Credit card interest piles up fast and before you know it you will be in over your head. You are in college to learn and become a savvy adult, so start making smart adult decisions that will positively affect your future-self. Parents: It is okay if your student has to figure out how to get the things he/she wants and to even go without sometimes. This will make them a more savvy as they get older.
