Money Management For Teenagers: If you’re a teenager, you’ve probably heard a lot, “Make sure you save your money.” And that’s all you’re really heard. You don’t really hear much about it other than what you should be doing with your money.
In this article, I’m gonna go over five different things that teenagers should be doing with their money besides just saving it. So let’s get into it.
1. Split Up Your Money
The first thing you should be doing with their money is just to split it up. That means taking the money you have and splitting it up between how much you want to spend on, Food, Entertainment, and Savings. So, make sure it’s all split up.
And in this way, if you go out to eat something, you know how much money you actually have. And you can only spend however much you saved up in your food category. So, make sure you split it up. This is just kind of an easy way to do budgeting.
You don’t really have to do a formal budget. Because, many times, as a teenager, you don’t have a lot of expenses, or you’re not paying rent. You don’t have all these different expenses that older individuals do have.
So, this is just kind of budgeting but on a much smaller scale. Just split all your money up. And then you gotta go from there. It’s also a good idea to get a big picture of your finances.
2. Invest in Your Passion
You have time now. You can put money into things that you are passionate about. You want to be careful with your money, but you can spend it on gear you are passionate about.
It’s so important to invest in things that you are passionate about. And it can be anything, whatever you are passionate about. Just try it. You have time, you might have some money, just go for it.
3. Buy Financial Books (Money Management)
Often when I say financial books, people just start falling asleep. There are the best financial books out there that are intriguing to read. If you get an interesting one, you might enjoy it. And the key here is just to get some financial literacy and some financial understanding when you are a teenager.
And that way, when you start making more money later in life, you’re already equipped with some financial knowledge that you know what to do. Amazon is the best place to get the Best Finance Books. And there are some great options out there. And you can get them used, you can save some money there.
Or if you really want to save money, you can get them at your local library. Usually, they will have a Personal Finance section. And if they don’t have the book you want, they can do things like an interlibrary loan. So, there are ways to get these books. But, just investing in your Financial Knowledge will pay you dividends in the long run.
4. Give Away Some Of Your Money
This is something that I definitely didn’t do enough of as a teenager. And I think the reason it’s so important. Because it’s a great mindset kind of thing. And it might seem weird because often, teenagers don’t have that much money. And why would I give my money away?
But, it’s great for the mindset capability. You don’t have to give a lot of money away, but just give a little bit away. Donate to someone less fortunate. You can find really great charities out there. Many kids ran clubs, or just different underserved communities, or maybe like a hospital club. And If you can donate to them, I’m sure they would very much appreciate it.
And this is just all about your mindset. Becoming too money-centric is not that great of a thing. It is a lot more fulfilling, and you feel good about yourself. And you’re just making the world a better place. So, this is something I recommend doing. Doesn’t even have to be a lot, and if you don’t even know how much money, you can donate your time. But it is Important to you.
5. Put Money Into a Savings Account
Another thing you should be doing with their money is putting it into a savings account. But not just any savings account. It should be going in a high APY savings account. APY stands for Annual Percentage Yield. These are special savings accounts that have a higher interest rate.
So, the interest rate is a percentage of the amount you are getting back on your money. If you have $100 in savings, and it’s at a 1% interest rate, you’ll get $1 back. And most big banks do the Chase banks like Bank of America’s. They have low-interest rates of 0.01 percent to 0.08 percent. But you can find these online banks that have higher ones. Like 1.5 to 2 percent, and that’s what you want to look for.
And this is just to get your money out of a savings account that is making you nothing and into a savings account that’s making you a pretty good return. So, I definitely recommend doing that. And it’s just to get your money, making it a little more money for you.
I would love it if you’d drop it in the comments below if you have any suggestions. I look forward to seeing what you guys have to say.