Money Management Strategies for Teens
Managing money wisely isn’t just a concern for adults – teenagers with jobs receive paychecks, and many high school graduates receive monetary gifts. These saving and budgeting tactics can help you lay the groundwork for financial stability and help you reach your goals.
MULTIPE SAVINGS ACCOUNTS
At SLFCU you can have multiple savings accounts at no cost. Set up savings accounts for different expenses, such as school, phone, clothes, concerts, and more. “Pay” those accounts each time you get a paycheck, and it will be easy to see if you’re budgeting wisely.
AUTOMATE YOUR SAVINGS
Have your paychecks automatically deposited into your savings account or automatically split between your checking and savings. To have your direct deposit split between multiple accounts, log in to online banking and click the Direct Deposits widget.
THE 50/30/20 RULE
Following this rule can help you budget your money. First, put 20% of your income toward savings and paying down debt, and, someday in the future, retirement. Then, look at your necessities – housing, transportation, utilities, and food. Aim for spending no more than 50% of your paycheck on necessities. The remaining 30% is for things you want but don’t need – this category includes your smartphone, internet bill, dining out, vacations, and charitable donations.
Try combining these savings and budgeting strategies – use direct deposit distributions to split your income into multiple accounts, then follow the 50/30/20 rule. Choose what works best for you. Find more budgeting resources.
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