Tips on How to Save Money for Teenagers

Teens spending more money than required, teens not knowing the value of money..is the concern for mothers of all teenagers across most of the countries. Parents had seen dark days, hence, they realize how important it is to reduce expenditure, but teenagers think that money is something that is meant to be spend lavishly on any small things. True, money is meant for spending, but one needs to learn to save money for rainy days as well. If teens are not taught this, then they will only head for trouble. Here are some tips on how to save money for teenagers, which anxious parents can follow.

Money Management Skills

It's important that teens are given the tips, because not only will they require that money for rainy days but also to pay through their college education. Once, they start a family, they need to save money for their family. If you think that it's a difficult task teaching them, then let me tell you that it's not. All you need is some patience.

Daily Expenditure
My dad always tells me that if one does not respect money, it will never respect you. Hence, it's important that you keep a record of your daily expenses. Make it a habit for them to write down all that they have spent, daily and then at the end of the month, and when they find out the total expenditure, they will realize where they have spent more. Next month, your kid will automatically try and save more in that part. This does not make you a miser but much wiser.

Open a Savings Account
The next financial literacy for kids and teens is, opening a savings account. Help them to open a savings account and help them manage it. Teach them how they can deposit money in that account and also how they can withdraw after they have saved some money for months. Ask them to decide on a goal; say for example tell them that the money is for a new car or for college, and then let them save, until they go to college or until they have a license and enough money to buy a car. By that time, they will realize the importance of saving money.

Do Not Carry Much Cash
Some teenagers have the habit of not leaving a store without buying anything. There's only one way to stop that and that's by carrying less money around with them. Going to the store or mall with the minimum amount, something which will not even help them buy a drink, and roaming around, for a few days, will get rid of their habit of not leaving the store without buying anything.

Save the Changes
If your teen has gone to a shop to buy something and gets back some changes, then do not let them spend it. Instead teach them to save it in a piggy bank. Whatever changes one gets back, should go to the piggy bank and teach him or her not to touch the bank, unless there is enough. They will get encouraged to save more when they see how the changes have added up to a huge amount after days.

Checking Account
The next tip is opening a checking account and this can be done once he or she has saved enough money. A checking account will make your teen behave in a responsible manner and will also put them into practice for saving for the future.

These tips should be followed from a very young age, i.e., once he/she is old enough to start earning and spending. Explain how saving money will be useful to them during the time of an emergency, so that they do not have to go borrowing money from others. These tips will surely help your teen to grow up to be more responsible.