How to Try Teaching Teens to Save Money

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By WriterGig
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Teach teens to save money

Teaching teens to save money is part example, part explanation. The learning process should ideally begin long before your teens land their first jobs. Teach kids about money while they are young, an$d let them observe your money habits so that they are familiar with finances from a young age. Here's how to start teaching teens to save money.

Difficulty: Moderately Easy

Instructions

Step 1

Not quite.

Discuss money with your teen as part of everyday conversation. If your teen has a summer job, discuss the wage and explain about payroll taxes. Many teens have an unrealistic view of how much money they will be able to save, because they don't realize how much is taken out of their earnings.
Step 2

Go over a basic budget with your teen. Teaching teens to save money also involves showing them how to plan their spending appropriately. Help them come up with their spending categories and decide how much to spend in each. Teens should also donate a portion to charity or causes they want to support.
Step 3

Checking account

Help your teen open a checking account and learn how to keep a checkbook ledger current. This is very important when teaching teens to save money, as balancing their accounts will prevent overdrafts.
Step 4

Save money

Teach teens to save a portion of each paycheck or gift money for long term needs, such as education and retirement, or shorter-term purchases such as a vehicle, school supplies or clothing.