Money-Saving Ideas for Teens

Your teenager will not learn much about making, spending and saving money in school so you, as the parent, must take on this responsibility. Early lessons on money-aving ideas can set your teen up for financial success and freedom. Start teaching your teen about handling money as soon as she begins asking for unnecessary items so she can learn the value of money.

Encourage Work
Encouraging your teenager to find work even if it is odd jobs around the neighborhood such as mowing lawns or babysitting, gives her a chance to start bringing in income. The technique also teaches your teen about the level of responsibility required to earn money and teaches her that the money she earns is directly linked to the amount of work she does. Your teen's income gives her the starting point to begin saving money.

Start a Budget
Sitting down with your teenager and reviewing her monthly bills such as cell-phone or car-insurance payments will give her an idea of the amount of money it takes to pay the monthly bills. Your teen may not be bringing in a significant amount of money because she has to juggle school and extracurricular activities, but have her take on one small bill responsibility such as gas money for the vehicle she drives. This process will teach her how to start a budget; she will learn the amount of money she must set aside each month for her gas-bill responsibility and see how much she has left over to spend and put into savings. Work with your teenager on an appropriate percentage of the amount left over that must be put into a savings account. Informing her of the benefits and uses of a savings account will encourage her to make consistent installments and reach financial goals.

Teach Money-Saving Research
Your teenager might appear stumped about how to take on a variety of monthly bills and still have money left over, so show her a few money-saving tips. For example, teach her how to research cell-phone and cable packages throughout the year to find the same or similar plans at lower prices. Another money-saving tip is to eat at home. Show your teen the cost difference between a reasonably priced restaurant meal and the cost of purchasing the ingredients and cooking the meal at home.

Source: http://www.ehow.com/list_6544732_money_saving-ideas-teens.html

Money Management Tips for Teens

The 2010 Junior Achievement/AllState Foundation Study, "Teens and Personal Finance," found that 25 percent of teens were either "not very sure" or "not sure at all" about how to budget their money. In 2009, Virtual World News reported on a WeeWorld study of 4,000 teens whose spending remained steady and was even expected to rise during the U.S. economy's recession. Online sellers--including WeeWorld itself, which markets avatars to teens--certainly take notice of this. While the ease of virtual spending may make it difficult for teens to think realistically about money, developing money management skills now will benefit them when they get older.

Create a Budget
Whether you have an after school job, work in the summers or receive an allowance, writing down your income and allocating where your money will go from month to month is an excellent skill that will put you ahead of the curve in adulthood.

Set Goals
Consider two sets of goals. Write down how much you want to save each month. In a separate column, write down high-price items you want to buy. It's easy to engage in magical thinking when a fancy car, a new brand of personal technology or an expensive outfit catches your eye. If you write down the cost of your objects of desire, you may find you don't desire them as much. On the other hand, you might see possibilities for juggling your income, expenses and monthly savings that will allow you to purchase the item.

Be Accountable
By sharing your budget and goals with another person--whether it's a parent or a friend--you become accountable. An added value is that the person with whom you discuss your money situation may have ideas and strategies that would have never occurred to you.

Source: http://www.ehow.com/list_6689827_money-management-tips-teens.html