The best way you can manage your spending as a teenager is to build a budget. There are many tips and tricks to building a budget that a teenager can use. Teen Finance Tips suggests the first thing you to manage your spending is to create that budget.
We have clashed our heads together to create a list of money management tips for you to use to get better at managing your finances.
9 Money Management Tips for Teens
Teen Finance Tips has created a list of our top 9 money management tips for anyone, not just teens. When you’re trying to save money and build long term wealth you have to be able to manage your money properly.
These 9 tips will help in your endeavor to be financially stable.
1 – Have a Steady Income
In order to have any sort of money management skills or needs you have to have a income. A steady income can be anything from a full time job to a weekly allowance from your parents. By having a steady income you’re able to budget appropriately.
2 – Build a Budget
This is usually the first step for a lot of people when they are trying to manage their money and spending habits. If you have a pretty bad spending habit and often spend more than your income – you need to get a budget as soon as possible to help stay away from long term debt.
3 – Build a Savings & Limit Spending
If you’re fortunate enough to be under 18 then have your parents help you. They can save the money for you or help manage your spending habits. The goal here is to limit how much you spend and in turn start to build up a savings. As you build your savings you can start to invest little amounts of money into slow growing income over time.
4 – Be a Frugal Shopper
This one is pretty hard especially if you’re an impulse buyer. An impulse purchase is almost always never intended. You should be looking for deals and shopping the different stores and even online before you make a purchase. There are many stores that will match online pricing and can offset some of your savings quite a bit. If you wait for that coupon or sale you can end up saving anywhere from 10-50%.
5 – Set Financial Goals
It’s very important to set goals for your finances. If you can set goals for your savings, investments, spending limits, and so on you can easily overcome any sort of impulse buying power. As a teenager you’re not really focused on the future and more on the now – that’s ok because you’re young. By focusing on the future you can make adequate financial decisions now and have a much, much easier life later.
6 – Review Financial Statements
We will admit there are times when your statements are false and you may have been overcharged or there may be some sort of fraud happening. We suggest you routinely review your financial statements at least once a week. If you get in a good habit of it, it shouldn’t take more than 10-15 minutes of your time and can end up saving you tons of money and headaches.
7 – Be Open & Honest With Your Parents
There is no one else in this world that has a vested interest in your success so don’t leave them in the dark. If you come up on hard times then ask your parents for guidance or even help. Don’t go to them looking for a handout but show them your plan to get out of debt, reach your goals, or start investing. If you show them you’re preparing for your future and want legitimate guidance – they will help you so don’t be afraid to speak up.
8 – Keep Debt Low
This is pretty much a “duh” moment. You want to keep the amount you owe as low as possible. It’s very easy to get in trouble with credit cards and get in way over your head. The best way to use a credit card is to only put small purchases on it and pay it off at the end of the month. You should never let your debt rollover to the next month. By keeping your debt low you’re showing future creditors that you are responsible for your money and this is a big thing when you go to buy a car or a house.
9 – Start Saving for Retirement
We couldn’t stress this enough to someone who is young. You probably won’t retire until you’re at least 65 so you should have at least 40 years to go if you’re just a teenager before you consider retirement. It may seem like a lot of time but it really does go quick and before you know it you’re 55 with no retirement plan or savings and you end up having to work the rest of your life to survive. Take the steps when you’re younger to start that 401k or investments and build your future, today.