What do you think that the right time is for people to start taking control of their finances? I strongly feel that the earlier money management starts, the better. The reason for this is that money management is a habit. You can build successful habits with money that lead to prosperity and financial freedom or ones that lead to the poor house.
Teens money management habits can last a whole life. If robust bad habits are formed at a tender age, they may bug you for an entire life, spoiling any hopes you have of wealth and financial liberty.
Just the same, good habits can also last an entire life, only they lead you in a positive direction. This being true, why not get started developing great financial habits at a tender age.
A teenage cash management plan does not have to be anything intensive. It is just a method to add some structure how they handle their cash.
The easiest plan is to decide on a specific percentage of their earnings, whether they earn cash from a job, chores, or an allowance. The amount of cash being managed isn’t what’s crucial. What’s significant is the practice of strategically saving on a regular basis.
Saving isn’t always a great course of action, and this will particularly be the case with youngsters. Thus it is good to add some incentives. If you’re a parent that’s trying to teach your kid the easy way to correctly manage his / her money, you can reward them in a considerable number of strategies. One way that i have seen work particularly well is for the folks to match the total saved every month by the teenager. This is a very motivating technique to get them to need to spend less and save more .
If you are a teenager making an attempt to reach your own money goals, and therefore taking control on your own, you can reward yourself by spending some cash on yourself on a fun way, but only when you have kept steadfast to your plan. The reward system balances the drudgery of saving and makes the hole habit more pleasurable.