Tag Archives: teens

How Can My Teenager Start Saving for the Future?

High school years are often tricky when it comes to money. Your teenager might have a part-time job, but how can they start using that money wisely and investing in their future? Keep reading to find out how you can guide your child towards smart financial decisions.

Open a savings account and don’t touch it!

The first step is for your child to open a savings account. Here they can stash a percentage of the money they’re making for future use. Time works wonders on money, so investing what they have will allow it to grow and become much more than it once was. That’s not all, though – make sure their savings account is strictly for saving and that it’s not being tapped into for other reasons.

Record and keep track of purchases.

A great way for your teenager to find out if they’re overspending is to put it on paper. Have them keep a book and write down all the purchases they make. At the end of each week or month, they can look back at what they’ve spent and know what changes to make in their spending habits.

Find a part-time or summer job.

If your child is too busy to work during the school year, a great solution is to help them get a summer job. If weekends are open, they could even find a part-time, weekends-only job during the school year to help rake in some extra money.

Get a jumpstart on an emergency fund.

If you haven’t talked to your teenager about the importance of an emergency fund, now’s a good time to do so. If they start putting money aside for emergencies only, they’ll be way ahead of the game by the time they need one as an adult. It’s never too early for your child to start investing in their future. Odds are, down the road they’ll need that emergency fund and will be more than thankful they started it early.

Plan ahead and set goals.

Once your high schooler graduates, they’ll be paying for things they might not have thought about. One smart move is to think ahead about what they’ll need to pay for so they can set a goal amount to save. For example, maybe they’ll need to buy a car, pay for college, move out and pay for rent, etc. Whatever it may be, having a goal in mind is a good motivator.

There’s nothing better than planning ahead, achieving your goals and getting a jumpstart on the future. Your teenager will thank you later for guiding them towards smart financial decisions, and the best time for them to start implementing these tips into their life is now! To help them start saving, set up a savings account with us today!

5 Things to Teach Your Teens About Financial Literacy

With your babies growing up, it’s never too soon to start teaching them the art of being fiscally responsible – but where do you start? According to the Council for Economic Education, only 17 U.S. states require high school students to take a personal finance class in order to graduate. Heartland Bank offers some great ideas on how you can begin teaching your child about financial literacy before they leave the nest.

How does credit work?

A lot of kids don’t know what credit actually means. It’s important to teach your child that credit means to borrow, but at a cost. You will need to explain the importance of a credit card and how keeping balances low are a good plan of action. You can also begin to discuss interest rates, annual fees and how they can check their credit report.

Everyone has to pay taxes.

Starting a lawn mowing business or babysitting will not be the same pay as when your child gets an actual job. If your daughter gets paid $12 an hour to babysit, she gets to take all of that home. Emphasize that she will have to pay taxes and talk about how some of that would be taken out to fix roads. This will prepare them for the future, so they can budget responsibly when waiting on that first paycheck. Since 2016, no state has added a personal finance course to their K – 12 grades. It is up to you to advocate for your child and make sure they understand all things financial.

What is a want vs. a need?

We all want the next cute pair of shoes or cool car, but we need to be realistic with our spending. Start making your child pay for gas, a portion of groceries and other little expenses. This will help show them what types of things they need money for, what portion should be put into savings and what is left can be spent on what they want – after their needs are secured.

You must budget to buy.

Start by having your child put aside 30% of their money for short-term savings and 30% for long-term. Another 30% can be cash they spend on whatever they need, and 10% could be put towards charity or another good cause to teach them giving back. Explaining to your kid what to do with money once it’s earned is commonly a missed step, so this will help you implement good habits.

How do I plan for college?

Begin going over different loan options such as federal and private loans. Explain how they can have an auto-pay set up to pay their bills on time. Seeking out scholarships is also an important point to place in their head. The average student loan balance is $34,144 as of 2017, so they can save a lot of money by getting a scholarship.

Preparing your child for the future is quite the undertaking – especially when it deals with covering topics such as finance. However, your child will thank you when they have fantastic budgeting and savings skills down the road! If your child is interested in opening up a savings account or applying for a loan, give us a call! We’d love to help teach them other financial literacy topics.

Creative Money Making Ideas for Teens

If you’re a teen, you know that making adequate money for your college fund and paying for the rising cost of items is challenging. School has never been as time-consuming and with the economic pressure to go to college and the rising rate in unpaid internships, you may be at a loss as to whether flipping burgers will help you in the short and long term.

We have come up with a list of creative ways you can earn some extra cash – without having to sacrifice your studies. Studies show that working 10-15 hours a week during the school year will even help to improve your grades. These can even be jobs you proudly add to your resume. With all of these ideas, be sure to check with your parents to be sure it is a safe situation!

Make Money Online

You know the older generation shreds you for it anyways – so you might as well make some money at it! There are so many legitimate ways to make money by simply being on your phone or computer. You can do this from home, so your parents don’t have to worry about where you are.

Try out Swagbucks, where you can earn free gift cards for answering surveys and watching entertaining videos. Another legitimate site is Inbox Dollars, where you take surveys and try new products. If you’re thrifty, try out Ebay or BookScouter to make a profit off of used items! Be very careful which sites you try to work with, and double check with your parents before starting as there are many scams out there.

Start a House Cleaning Business

There are many different types of people who need help cleaning their homes. They may not have the time or be physically capable. With a little overhead of buying your own cleaning products, you could easily make $15 an hour if you are a great cleaner. Many of these people hire professional cleaning services which will charge double that, so you will be a competitive contender!

Turn Your Hobby into a Gig

Want to have your perfect employer? Go into business for yourself! This is not only a chance to earn some money loving what you do, but you will learn a lot about what it takes to be in business. You will be your own HR Department, Secretary, Marketing Department and Executive. There isn’t always a chance to do this as an adult, so go after your hobbies in full force now! You can refine your craft and find yourself accumulating many of the hard and soft skills it takes to be successful professionally.

Teach a Class

Do you have a skill that you would like to share with others? Maybe you are really good with computers. You could teach senior citizens the basics of the internet. Are you really good at math? Teach or tutor your peers. If you play an instrument, there will be hordes of parents ready to get a deal to have their children learn.

There are so many avenues of jobs you can do as a teen, although the options may seem scant at first glance. Build off of our ideas, or come up with your own. Having a worthwhile job will help to teach you independence and how to budget your money.

“Tell me and I forget

Teach me and I remember

Involve me and I learn.”

Benjamin Franklin