Money Management Tips for Teens

Teenage girl saving money in piggy bank

Whether you spend every summer mowing lawns and babysitting or are preparing to move to a university in the fall, managing your money may seem like a waste of time right now. Something you won’t need to worry about until you graduate and have a place of your own and a full-time job. But if you can learn how to manage your money when you are in your teens, you can set yourself up for a lifetime of financial success. Learning healthy money management isn’t difficult either. By just establishing some basic habits now, future you will thank you for decades to come.

Save Money Early

One of the first things you should do when you start earning money is setting a portion of it aside for savings. It doesn’t matter if you have a steady summer job or are only working the occasional babysitting gig, if you set aside a portion of whatever you earn into a savings account you are already on your way to developing a healthy relationship with your finances. You can even take it a step further and put your savings in a high-yield or retirement account. The thought of retirement may seem like light years away but if you can set aside even a small amount now, the benefits will be exponential.

Start a Budget

Even if you don’t have regular income, or your only cash flow comes from your allowance, as soon as you start earning money you need to establish a budget. There are plenty of online budgeting apps available for free that can help you visualize your money and begin to develop healthy habits. If you can get into the habit of using a budget early on, it will be much easier to stick to that budget when you have larger expenses like rent and utilities to deal with each month.

Educate Yourself

Take your money management education into your own hands. Unfortunately in most cases, you can’t rely solely on your school to teach you about managing money and it can be an uncomfortable topic for families to discuss. But there are plenty of podcasts and articles available on the internet that speak directly to your generation, covering everything from budgeting and investing to managing your money wisely and how to save for big purchases.

Spend Smarter

A great way to manage your money when you are younger is to develop healthy spending habits. Even though you may not have large monthly expenses now, you will in the future. Get into the habit of saving up for a larger purchase, waiting until something is on sale, or you have the money in your budget to go out to eat. This will help you avoid impulse purchases, which can destroy your budget. If you have a credit card, make sure you are only using it in emergencies! And no, splurging on the “perfect” prom outfit or latest gaming system does not count as an emergency.

Don’t Forget Your ID!

Did you know your student ID card can be used outside of school? There are so many businesses that offer a student discount on a variety of products, from movie tickets to gym memberships, you should ask every time you make a purchase. You can even get a discounted rate on Amazon Prime with a valid student ID.

Establish a Relationship with Your Financial Institution

There are so many benefits to developing healthy money management habits as a teenager. Make the most of the extra time you have and create a healthy relationship with money now, and your future self will thank you. When you want to get more out of your hard-earned money, visit Missouri Central Credit Union. One of our Member Service Representatives will walk you through all of your money management options and help you understand all the benefits available with your account at MCCU. Make sure to ask about our designated Teen Checking Account! They are an excellent choice for any teen at home or away at college. Our Teen Checking Accounts don’t carry any hidden fees or minimum balance requirements. Managing your money doesn’t have to be a loathsome task when you work with the friendly team at MCCU.