Budgeting Tips for Teenagers
There is no minimum age limit when it comes to learning about money. In fact, many parents will often teach their kids the very basics while they’re still very young and completely unaware of what money actually is. This is because, in order to gain a higher chance of developing strong financial management skills, we must build the ability over a longer period of time. Although teaching your kids while they’re still young isn’t essential, it can still be worthwhile. In fact, many teenagers and young adults enter the working world with no idea about budgeting or managing their money. Therefore, they’re more likely to fall into financial difficulties or find themselves needing to borrow a payday loan. So, in order to help teenagers avoid these circumstances, we have developed a few budgeting tips that may be useful to the younger generation…
Using Your Phone
It’s no surprise that teenagers are much more digitally aware than many of the older generations, so why not put this to use? There are hundreds, if not thousands, of apps available for free that individuals can download straight onto their devices, like Emma. Integrating a new challenge into something they’re used to will definitely add an advantage to the budgeting process. Not only this but budgeting apps are equipped with all of the necessary features to make the budgeting process as easy as possible. Therefore, ensuring that there is little to no confusion for those just beginning their budgeting journey.
Teaching the Fundamentals
It is critical to cover the fundamentals of budgeting with a teenager before delving into specifics. Over confusing or complicating the situation can easily flip somebody’s opinion on the task, making it seem like more of a chore. However, this is something that we definitely want to avoid. One of the main points made should include the idea that your outgoings should never exceed your income. This way, they can learn to stay away from debt and short term loans. It will be different for every teen, however, if you’re trying to teach somebody who spends much more than they have, it’s best to try and stop this habit before progressing. As a teenager learns more about the budgeting fundamentals and the basics, they will be able to begin saving and restricting their finances before diving into adulthood.
On the other hand, if you’re a teenager teaching yourself, you have more freedom to research and learn more on your own accord. This way, you can choose exactly what you learn, and perhaps what you don’t. This could include your budgeting methods and strategies, what categories you choose for expenses, and how you decide to track your money. Luckily, the internet is filled with different tips, tricks, and hacks that you can try, such as setting money milestones to hit before you’re 30. This gives you the opportunity to have fun and experiment with your finances whilst you’re still young.