7 TIPS FOR TEENS TO MANAGE MONEY

BE MOTIVATED

Identify what you want to achieve and where you are now.  What is your money script? Are you a spender or a saver?  What is your money relationship?  Is your money a honey or a monster?  Your behavior determines your identity or character.  Your character becomes your destiny.

DEVELOP A MONEY GROWTH MINDSET.  Abundance verses Scarcity.  Believe that there is enough for everyone NOT that there is not enough. What you perceive and believe you will achieve (Ralph Waldo Emerson) How do you do this?  Make money GOALS AND WRITE THEM DOWN and VISUALIZE YOURSELF AS HAVING ACHIEVED THEM. 

LEARN TO BUDGET AND MANAGE CASH FLOW and IDENTIFY SPENDING LEAKS.
How?

• Open a checking and savings account at a credit union or online or local bank.
• Learn about fees (ATM and overdraft) and interest rates (APR and compound) and shop the best rates.
• Get a debit card and monitor AND TRACK spending daily. Identify needs and wants and review/prioritize spending.

Grow a SAVINGS and INVESTMENT habit.  Learn to PAY YOURSELF FIRST by saving at least 10% of money earned or received.  Think about your future security and invest in it.

• Identify savings goals, “sunny day fund” “rainy day (emergency) fund”, or for specific goals like a college or career fund (529 acct) or a car or deposit for apartment.
• Separate your savings into different accts and AUTOMATE transfers.
• Save a $1000 to feel positive and motivated about your savings habit.
• Invest in a ROTH IRA by 25 years of age for your future life security.
• DONATE & ADOPT a giving mindset, believe that to give is to receive.

BE CREDIT SMART and CREDIT SCORE SAVVY. Credit is not extra income.  It becomes debt quick AND develops into financial STRESS if not managed properly.  What’s important?

• Start with a Secure Visa at your bank or credit union.  A Secure Visa is one that is secured by your own savings so when you borrow, it’s from your own savings paid back with interest.
• Make sure you pay your credit card by/before due date.  It makes up 35% of your credit score.
• Don’t spend more than 30% of your credit limit.  If you have a $500 limit don’t use more than $150.  
• Watch the overdraft fees so best to autopay to avoid fees.
• Don’t apply or get talked into unnecessary credit cards.  Get credit intentionally.  
• Build credit history with reputable institutions and don’t close an established account.

DETERMINE  WORK you will do in the future. Learn to about yourself and the cost of college and career training.

• Get a college/career coach or use an app to help identify your talents and strengths to visualize and plan for the work or contribution you will do.
• Go to free 2 yr. college schools and utilize the counselling offered on career development
• Apply for all grants and/or scholarships you qualify for.
• Delay applying/getting student loans as long as possible

GET ACCOUNTABLE AND COMMIT TO IT.  When you commit to a goal, focus, and act it WILL expand and manifest itself.

• Use an app like Junior Achievement (www.jausa.ja.org) to seek guidance and track progress.
• Sharing your goals with others contributes to accountability.