How to Teach Teens Good Savings Habits

It’s important to develop good savings habits at an early age, so by the time you’re an adult, you have well developed saving skills. Below we have a list of some ways to teach teens good savings habits.Most skills we use, whether it be honing our golf swing, learning a new language or even figuring out how to use the latest tech gadget, are not developed overnight. It takes time, practice, and often times a little help before we feel like we have mastered that skill. Learning how to master the art of saving is no different. It takes time, practice and a little help, before we are comfortable with saving money.

For teenagers, saving money can be a difficult task. Most of us remember the trial and error of saving money. If you blew your whole allowance on candy and popcorn at the movies on Friday night, you didn’t have anything left Saturday. And if there was something special you wanted to save for, it always felt like you would never reach your goal. It’s important to develop good savings habits at an early age, so by the time you’re an adult, you have well developed saving skills. Below we have a list of some ways to teach teens good savings habits.

Talk to Them About Saving Early

Habits form over time and the best way to prevent bad savings habits is to talk to your children about money from a young age. Get them used to considering the costs of some things so they can learn the value of money. By their teenage years they should have a solid foundation about spending and saving.

Set Savings Goals

Speaking of saving, it’s important to help set savings goals for your kids. Whether it be saving for their first cellphone or their first car, a goal will help them have something to work toward. If they can visualize what they are working hard to accomplish, they are likely to be more inclined to get there.

Set a Budget

Having a budget and sticking to it is very important when learning good money saving habits. Sit down with your teenager and show them how they can track their spending to determine how much they will save by sticking to their budget. Learning how to budget their money from a young age will pay off immensely in the future.

Get Creative to Earn Money

In order to save money, you first have to earn it. Most of us get our first taste of work by doing chores around the house. Doing the dishes and taking out the trash are necessary, but you’re not likely to see a lot of enthusiasm from your children. What you can do is encourage your kids to come up with creative ways to earn money. They could start a dog walking business or if they are the creative type, set up an online business on Etsy. Whatever they decided to do, they will work harder when they are their own boss.

Parents Match Savings

One way to entice teens into saving money is to give them incentives. An easy way to do that is to offer to match the money they save each month up to a certain amount. Think of it like an employer may match an employee’s 401k contribution. Matching their savings will help them see that you are also committed to helping them save money. At the end of each month, the money should be deposited in your teen’s savings account so they won’t be able to spend it.

Free Checking Account from Colonial

Now that your teen has begun to learn about good savings habits, it’s a good idea for them to have a checking account so they can monitor their money and spending. Colonial offers a free checking account along with a whole suite of banking products that fit the needs of any customer. Colonial also offers an interest bearing checking account so you can put your money to work for you. Find a Colonial Banking location near you. To browse Colonial products, visit the banking portion of the Colonial website here.

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