Categories
Make Money From Home

Managing Money: Tips for Teens | Chase – Chase News & Stories

When you’re young, time stretches out before you, presenting an array of possibilities. The habits created during these formative years can help shape someone’s life, and it’s your job as a parent to guide your teens …….

When you’re young, time stretches out before you, presenting an array of possibilities. The habits created during these formative years can help shape someone’s life, and it’s your job as a parent to guide your teens towards the right ones. Money habits are no different and learning how to manage money wisely at an early age can potentially give teens a leg up for when they’re on their own.

Money basics

Many banks offer introductory bank accounts for teens. With these accounts, minors can open an account with their parents or guardians as the owners or co-owners. As a bonus, parents and guardians can start guiding teens through finance fundamentals with real-world examples and questions.

What is a budget?

A budget is a common way to plan and track expenses by comparing money coming in vs. money going out. By planning well with a budget and seeing where money is going, your teens can start learning to make more informed decisions.

What is a spending threshold?

A spending threshold, or spending limit, is a limit that might be placed on transactions over a set amount. This limit may be adjusted over time.

What are monthly expenses?

Monthly expenses are anything money is spent on within a given month. This can include things like shopping and entertainment, or even school supplies. As the teen transitions to adulthood, monthly expenses can become necessities such as rent, utility bills or loan payments.

How much should kids save?

The exact amount will vary based on budget and savings goals. One way to save money involves helping your teens set SMART goals. SMART goals are:

  • Specific: Give goals a focus. As an example, teens may want to think of something like, “I want to save for my first car” instead of “I want more money.”
  • Measurable: Create goals where it’s easy to measure progress. As an example, saying “I need X amount for my first car” gives teens a clearer finish line than saying “I need some money.”
  • Achievable: The goals your teens set should be realistic enough to stick to and attain. It’s the difference between “I need to save $Y from every paycheck” and “I just won’t spend any money at all.”
  • Relevant: Goals should feel relevant. For young people, something along the lines of “I’m going to save money for my first car” will likely be a stronger motivator than something like “I need to save money for a retirement home.”
  • Timebound: Set a time limit so you and …….

    Source: https://www.chase.com/personal/banking/education/budgeting-saving/managing-money-teens

Leave a Reply

Your email address will not be published. Required fields are marked *