Posted by Allen White On November - 20 - 2010 Comments Off on 7 Smart Money Management Tips for Teens

Being a teenager can be a difficult and confusing experience because you will be a part of a lot of changes and responsibilities. The biggest responsibility is about handling money. Though it may sound not so fun, your teenage years are a perfect time to understand money matters. Most people begin their financial education at a later stage in life and by then it’s too late as they are already covered in debt. Stay one step ahead and learn to manage your money when you are in your teens. Use these tips to on managing your money:

  1. Find a part time jobs to earn some extra bucks. Babysitting, working in a restaurant or yard work are not the best jobs in the world but they teach teens the value a dollar. Also, you can work out a deal with your parents involving your academic results-say for every “A” grade” you get $5. What you can earn per month may not be much but at the end of the school year it won’t look bad and it may buy you things you have been wanting. Moreover, as you start earning money, you also learn how to manage it.
  2. Learn the importance of being frugal. Frugal living does not mean that you have to live like a unfortunate kid with nothing. Just make sure that you are not extravagant and a showoff. Cut expenses wherever possible. Do a bit of research before buying anything. Find out which store offers the same product at a lesser price. Ask yourself some critical questions. Is it really difficult to talk less on your cell phone? Can’t you avoid eating out every now and then? These little expenses count in a major way when they add up. However, keep space for entertainment so that you can enjoy even while saving.
  3. Remember that time is money. So learn time management right from your teens. Suppose you earn $2 looking after your neighbor’s children. If you spend $10 on a CD in a music store (which is an hour’s drive from your dwelling place) when you could have brought the same CD from your local store for $8 then you are not just wasting $2. You are also wasting couple of hours and consequently $4 (which you could have earned by doing the babysitting job). Judicious use of time is something that can make you an outright winner.
  4. The joy of using a credit card for the first time can be quite overwhelming for a teenager. In between you might forget that credit cards are the single biggest factor responsible for getting people into debt. Credit cards tempt you to spend what you don’t have. Teenagers, who are usually inexperienced with the concept of unsecured debt, fall for it. If handled with responsibility, credit cards are a good thing to have. Otherwise, use debt cards to avoid overspending.
  5. Young and inexperienced teenagers often end up becoming a target of identity theft which results in monetary loss. If you are into credit cards then make sure that you take adequate protection. While using credit cards online you should check whether the site is secure (look for https:// in the URL). While using credit cards in restaurants etc. make sure that you keep your copy of the receipt. It might have your credit card number printed on it. Be careful while disposing credit card receipts for the same reasons.
  6. When it comes to managing money, there can be no alternative to budget. With budgeting you will learn how to plan your spending. You will also understand how to strike a balance between spending and saving. Budgeting will allow you to save for things you could not afford otherwise. If you start budgeting this early then you will never feel lost with your finances in later part of your life.
  7. Finally, follow your parents. Closely examine how they manage to live comfortably within a fixed income. Take their advice on how to control your finances. Let them show you how to know your priorities and allocate money accordingly. Your dad can often be your best financial advisor.

A teenager often imagines that it is too early to enter the complicated world of financial management. However, every day counts when it comes to making the most of your money. So keep in mind what you have read and remember that it is never too early to begin money management.

Categories: Money, Money Tips

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