Source:mynewsghana.com
Parents with teenagers know nothing comes easy, including money management. But with young adults facing mounting levels of student loans and credit card debt, building a strong financial foundation early on is more important than ever. Learn how teens tend to spend and save, and consider teaching them age-appropriate money habits that can last a lifetime.
1. Know where the money comes from
While many parents give their teens an allowance or pay for things directly, others earn their money through independent jobs.
2. Understand the benefits of saving
Most teens save their money, and by putting a little away each month that can grow into big savings over time.
| Saving $25 a month | Saving $50 a month | |
|---|---|---|
| 1 year | $300 | $600 |
| 5 years | $1,500 | $3,000 |
| 10 years | $3,000 | $6,000 |
Note: Numbers do not account for inflation or any account interest.
3. Track expenses to stay on budget
In 2020, the average teen spent $2,150 across a range of categories like food, clothing, and entertainment.
4. Establish good credit
Help your teen understand the risks and responsibilities that come with using credit cards and avoid stacking up debt in the future.
5. Think long term
Focusing on the future can help teens start saving their own money and teach them to better accomplish the goals they set for themselves.
What teens think
1.They think they’ll have $100,000 saved by age 30 – (35%)
2.They plan to pay off student loans by age 30 – (43%)
3.They believe they’ll own a home by age 30 – (66%)
