Money Management Tips for Teens

Money Management Tips for TeensJust because you are a teen does not mean that you do not need to know how to manage your money. This is the time in your life where you should be mastering money management, before you get out in the real world. Here are some tips for all of you teens out there to help you learn to master your money management skills.

First of all get a part time job for extra money. It does not have to be something that you will do for the rest of your life, so even if it does not seem that exciting, remember you will not be doing it forever. For example, you could baby sit, you get mow the lawns in your neighborhood when it is nice out and shovel the snow in the winter. Getting a job will give you more money to practice money management with.

Next you need to learn how to be frugal and why it is so important. It is better to save your money for later than to spend it all now and have nothing for later. Think about it this way: if you spend all of your money and then there is some emergency, where are you going to get the money to handle the emergency? Chances are many of you are saying your parents or maybe even your grandparents, but what will you do if they cannot or will not help? Then you are on your own without any money. This is one good reason why it is best to save your money for later instead of spending it all now.

When you get your first credit card remember that it is not free money. All too often teens are given credit cards for emergencies or are told they can use it if they pay the bill and do not understand fully what it means to use the credit card and end up unable to pay when the bill comes. Make it a personal rule that if you cannot pay it off in full when the bill comes, do not purchase it.

You need to learn how to budget your money while you are a teen. It will make life so much easier for you when you are out on your own if you can create and follow a budget now. Take your time when creating your budget, and see if your parents will give you any insights into creating an effective budget.

Make sure that if you have a checking and/or savings account that you are checking your statements very closely every month. You will also need to start getting copies of your credit report from the three major credit reporting companies. Teenagers are being targeted more and more for identity theft, which means it is becoming more and more important that you are doing what you need to in order to protect your identity.
Last but not least, follow the financial example your parents have set. They have been through it all before. What mistakes have they made? What advice can they give? They can teach you a lot when it comes to personal finances, so ask questions and actually listen to what they have to say.

Teenagers today have more money than ever before. This is why you need to know how to manage your money now more than ever before. Mastering money management while you are still a teenager will give you a huge advantage when you get older and are out on your own in the real world.

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