Whether its the local ice cream shop or a popular retail store, a first job is an exciting experience that brings with it new kinds of responsibility and freedom. It is also the perfect opportunity to start teaching yout child about managing money, regardless as to what their paychek may look like or what their expenses are (if they have any).
We’ve put together three financial tips to teach your child about to get them to start thinking about their money and how they manager it. The younger they learn about financial responsibility and money management, the smarter they’ll be when it comes to more serious financial decisions down the line.
Most banks offer great incentives to teens when they open their first bank account. Some banks will offer a bonus for opening a checking account and most banks waive monthly maintenance fees and don’t require a deposit minimum.
After opening a bank account, see if your child’s employer can change method of payment to direct deposit. Utilizing direct deposit will make it thank much easier for your child to keep track of their income and divy up how they want to use it. It also removes the stress of getting paid with cash or a check and having to keep the form or payment safe or keeping track of it until they can deposit it.
Encourage your child to set savings goals. Having short-term goals will help them stay motivated about managing their money responsibility because they’ll be able reach checkpoints of significance in shorter time windows. Having long-term goals will help them in establishing patience and thinking critically about loftier aspirations and how to realistically attain them. Gaining experience setting both kinds of goals and working towards them will make your child a well-rounded money maker and saver.
Even if they don’t have many, or any, expenses at the time, helping your child create a spending plan with help them be a more considerate spender and saver. This will also kickstart their epxerinces with planning and budgeting, making it easier to do and lest daunting as they age. After working on a spending plan with them is a great time to introduce opening multiple checking accounts that they can transfer money to accordingly, helping them not overspend in certain areas. If they don’t have many expenses or don’t anticipate being in a phase of a lot of spending, encourage them to open a savings account! If they have multiple goals that require saving, have them open multiple savings accounts.
Have a child nearing their 20s or just want to improve your financial knowledge in preparitons for your child’s college years? Check out our free “3 Financial Mistakes to Avoid in Your 20s” resource! It goes over the most common financial mistakes of people in their 20s, specifically when first getting to college, and how to avoid making such mistakes. Use the link below to download the PDF and start learning!