Three Reasons For Teens to Start Saving

It’s so easy to waste money, even more so when you’re young and are yet to learn the real value of it. But starting young is the key to setting yourself up for success later on, and if you have kids or teens, here are just three reasons it’s worth them saving what they can. It could be money from birthdays and Christmas, pocket money or part time jobs.

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Education

College and university is expensive, and chances are they’ll need to utilise loans and perhaps help from you to pay for things like books, fees and accommodation. But saving up towards education is no bad thing, and if they start a couple of years before they leave they’ll go away with a nice buffer. This can make it easier to afford travelling around the city they’re in, food, socialising and other daily living costs. When teens move away to university, it’s often the first time they’ll get a proper taste of independence, they’ll be managing their own money for the first time. Being equipped with some of their own money can make the process run much more smoothly, and if it’s cash they’ve saved themselves they’re likely to be that bit more careful with it as well.

A car and driving lessons

Being able to drive gives so much independence, and it’s this which teens and young people really crave. Learning to drive, theory tests, practical tests and other extras can really add up, not to mention the purchase and running costs of a car. Saving up before they’re old enough to drive means that once they reach the legal driving age they can book some lessons right away. Or once they pass, they can get themselves a car. Even if they can’t cover these costs completely and you need to foot the rest, it can make things easier for you and using their own savings means they’ll appreciate it more. Being able to drive can also open up the door to more jobs, those that are further away or those that require driving. It could even lead to setting up their own business. You can find finance deals for vans on sites like The Good Van Company so you don’t even need all of the money upfront.

Deposit for a house

Getting onto the property ladder is so worthwhile. Once you move out and start renting, it’s easy to remain stuck in the ‘renting trap.’ You can’t save much money for a deposit as all of your money is being spent on rent and bills. Once they’re working full time but before they move out of the parental home, it’s worth having a chat with teens and young adults about saving for a deposit. Living at home while they save means they’ll reach their goals much more quickly. When they do eventually move, it could be into something of their own rather than it going to a landlord every month.

All of these things can feel like a long way off when your child is in their early teens, but the years fly by. Anything they can save up now can all go towards a brighter future later on.

Giving Teenagers Financial Responsibility

Teaching children and young people about money is something that we believe very strongly about. We are grateful for this excellent guest post by author Chrissy Duncan.

Giving teenagers financial responsibility before they are 18 is important. It gives them experience in looking after their own money and dealing with banks whilst they are younger. They can do this without fear of getting into debt, or damaging their credit rating. They will be able to pick up good spending habits and learn about interest and savings.

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Introducing teenagers to prepaid Cards

A prepaid card is a good way to start teach teenagers to be responsible with their money, and they can spend only within their limits. The card can be “loaded” with money via the website or an app, be this with wages or pocket money. There is no way that they can get overdrawn, or get into debt. You can use it to pay for things in the same way as using a credit card for purchases. An adult can apply for a prepaid card on behalf of a child from the age of 8 upwards, and they can also set spending limits and monitor usage if necessary.

Setting teenagers up with a bank account

Making sure that teenagers have a bank account is a good way to help them to use money responsibly. This is key to helping them understand about dealing with financial institutions. The child has to apply for a spending card, which they can do from the age of 11. All banking transactions can be done using a mobile phone app. They won’t have access to an overdraft, so can only spend the money that they have. A bank account will give them financial independence and responsibility.

Giving teenagers financial responsibility before they are 18 is important. It gives them experience in looking after their own money and dealing with banks whilst they are younger. They can do this without fear of getting into debt, or damaging their credit rating. They will be able to pick up good spending habits and learn about interest and savings.

 

Teach teenagers about interest

Teaching teenagers about interest is extremely important. If they have a savings or current account, they may be able to accumulate interest on the money that they are keeping in the bank. It is also worth teaching them that a loan or credit card works the other way around, as they can apply for one at the age of 18. The more money that they have in their bank or savings account, the more interest they will be able to accumulate. Doing an online course about compound interest rates is a good way of educating them.

Having financial responsibly should be taught to children and teenagers before they are 18. By helping them have independence early and educating them about money, they will be less likely to have financial issues in the future.

Teens: What You Need To Know About Flying The Nest

As you approach the end of high school, you’re probably looking toward college with a heady mix of fear, apprehension and outright excitement. This is your time as a young adult – too old for babyish curfews and rules, too young to be totally independent from the bank of mom and dad. It’s your time to strike out and live the way you’ve always wanted to live; away from home, from rules, from regulations and from being under the watchful parental eye. The question you have to ask yourself is whether you are ready. Are you ready to make that leap and be in charge of yourself?

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You’re probably answering yes, saying it loud and proud and demanding the number for the moving companies you will call to help you gather ye rosebuds and sow them elsewhere! But wait – there are some things you’re going to need to know before you take that step. College may be ‘moving away’ but you’ll be back for holidays, and if you want to be truly independent you have to look within yourself and decide whether you really are ready.

Self-Help Skills. Before you move away from home to go to college, there are going to be a few skills you need to have under your belt. Ideally, your mom and dad instilled in you from a young age some tricks and tips in looking after yourself, namely being able to do your own laundry, cook something more than Ramen on toast and how to pay your own bills. If the idea that you have to do any of this stuff is concerning to you, then you’re not ready to make that leap. You need to learn how to plan ahead with your money so you can balance a grocery bill, your utilities, rent and even have cash left for socialising. You don’t want to have to call up your parents every week because you blew your cash – so be smart.

Once you are at college, if you need help with writing essays and reports consider a term papers writing service

Values. As a teenager, you’re going to come under all kinds of pressure from people around you. Drugs, alcohol, cigarettes and any number of taboo items that you would have had many lessons on saying no to. Upholding your values as a person is a key part of your developing maturity. Aim to fit what you want from yourself, rather than fit in with the crowds and be a sheep. You don’t have to follow the crowd for a good time. Have some self-assurance and if you feel like your own morals are in question, it’s a pretty accurate reason to stay confident in your beliefs and just say no.

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Your parents are equally as nervous about you moving out of their home. They’ve cared for you and provided for you your whole life, all they want is what is best for you. Know that even if you’re living halfway across the country, they’ll always be there for you as a confidant, as someone to lean on and as a back-up just in case. Rely on them but trust yourself. Moving is a big step, but it doesn’t have to be a scary one.

 

Teaching Teens The Financial Value Of Safer Driving

Teens are natural risk takers and believe they will live forever – a nasty combination when they start learning to drive. They will also start to forget all the valuable lessons you have taught them about finances in the past  – temporarily, at least.

The result is a headstrong child driving in a lethal weapon, who knows that mom or pop will bail them out if they have a crash. And a young adult who doesn’t care about the fact you are worried about their safety.

So, how can concerned parents teach their kids about the value of driving safely – at all times? As I mentioned above, their innate confidence means they will think you are overly concerned. After all, they can drive perfectly well – the license they have in their wallet or clutch proves it, right?

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Forget about safety

First and foremost, forget about your safety concerns. Try and think back to when you were a teen. How many times did you listen to your parents when you went out for a night? What did you do when they told you to be careful or watch how much you drank? Or, when they asked you to make sure you drove slowly? It will go through one ear and straight out the other. You need a different tactic, and one that they know will impact them – money.

Talk about insurance

It’s OK to pay for your kid’s first car, and all the costs that go with it. But one tactic that might work for you is to make sure that your teen is aware they will foot the bill for any insurance increases. Now, as an adult with years of experience of driving a car, you might not remember how costly that can be. Teen auto insurance is extortionate enough as it is, but it skyrockets even further if they are involved in a crash. And a quick search online for an auto insurance comparison service will show them exactly what that will mean. They could be facing extra payments of over $100 or more every month.

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Talk about the impact of an accident

While your teen will care little for their own safety, they will care if it impacts on your family. So, let them know how much it will cost to hire a personal injury attorney in the event they have a crash. Point out that you might have to say goodbye to your family vacation, as you will need to take time off work to look after them in their hour of need. It’s even worth showing them precisely how much it costs to treat an accident at a hospital, including the ambulance fees, charges for X-rays and scans, and the price for staying overnight in bed. Even a teen from a wealthy background will wince at those figures!

Conclusion

Teens don’t go out with the express intent of causing trouble on the roads; it’s just the way their brains are wired. And their wild nature means no harm to anyone else; it’s just that they think they are superhuman. But with a little education in the right areas, you will be able to – hopefully – encourage your child to learn the financial implications of having a crash in a car.