Financial Planning Tips for Teenagers

Teenagers must learn how to manage thier money from personal allowance.
Teenagers must learn how to manage their money from personal allowance. With this, they can be responsible in spending their own money and become a well-rounded mature persons someday.
An allowance is a fixed amount of money that is given to a child for his daily needs in school. Giving the child his allowance imposes on him the responsibilities of using it properly. It gives him a chance to hold his own money and decide on how to use it properly. He learns how to establish his priorities in spending. It also teaches him how to save money for a want that he may desire to buy in the future. Allowances may be given daily or weekly. It may also be monthly for college students. For an elementary or a high school student, it is unwise to give him a large amount as he may lose it or spend it too freely. As in household budget, allowances should also be planned to meet all the needs of the individual. Generally, parents may buy the students their school supplies, but emergencies may occur forcing him to spend for it using his allowance.


Planning the Personal Spending of a Teenager

Everyone plans for his personal spending. Not a day passes without one buying anything. Teenagers usually get money in one of the following ways:
  • Asking money from your parents or other members of the family.
  • An allowance, may be given to you. A definite amount is given to you either daily, weekly or monthly.
  • You may work to earn the money that you need. You may get a job in stores and restaurants that employ students. 


How to Manage Your Personal Allowance 

The allowance should be planned to meet all your needs. Since we can consider the allowance as wealth for teenagers, then we must also teach them to have the so-called wealth management. Bear in mind the following steps in budgeting your allowance:
  1. List down the amount of allowance for a day, a week, or a month.
  2. Make a list of items on the budget. Write them according to priorities.
  3. Decide the amounts of money to be allotted for each time.
  4. Evaluate the budget that you have made.
Thinking about saving your money? You can always go to your nearest bank and open a savings account.
In planning for your personal allowance, you should consider how much money you have which you can spend. Then decide what items you are going to buy and how much will be spent for these things. The plan that you made should be strictly followed. There will be the time when you will be tempted to forget the plan but you should always stick to it in order to assure success in implementing your budget. Keeping an account of expenses will help you develop good spending habits.

Saving money for a dress, a shirt or a repair of shoes will establish the habits of saving. It will be easier for you to save if you have a goal to achieve. Remember, personal spending is a well-planned if your needs are provided for, if it has given you a feeling of satisfaction, and if it has helped you grow and develop into a mature person.


Photo credits:
kibsri via freedigitalphotos
stockimages via freedigitalphotos

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1 comments:

  1. My kids are starting their teenage years. I want them to learn how to take care of money rather than just asking for it from me all the time. I think learning stuff like this as a young adult is invaluable. http://www.benchmarkfa.com/p/products-services

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