Teenagers have so many things to enjoy as they are totally energetic and full of excitement and exhilaration. This time of age is free of worries. They do not bother about words like savings, wealth management and financial management etc. But the real fact is that is the only right time to learn about money management. It is the best time for them to start building wealth with proper money management as they have the energy and drive to do so.
Most teenagers are college students who need to break the mould of teenage irresponsibility. Building a momentum during young age ensures a bright future for any teenager. Below mentioned are some basic pillars of money management that every teenager need to know about for a better future:
- Save Money: The first pillar of basic money management is saving. Teenagers should be taught how to save some money out of the pocket money they get. Parents should help them do it by guiding them towards opening a savings account or keeping money in a fixed deposit account and earn interest just by doing nothing.
- Debit Cards: Debit cards allow you to spend your money in a cashless environment. You can spend your money without owing any money to the bank. Young ones can learn a lot by using debit cards as they would know that they can only spend as much as they have in their bank account which would let them to decide about spending money in a wise way. Moreover, they learn to take care of their debit/ATM cards properly.
- Investments: After knowing that you have managed your money and have some a substantial balance in your bank accounts, it is next time to think about investing money. Teenagers should learn to invest money. They can get so much valuable information on investing from libraries or Internet. There are many sources of investment. To start with, they should do some research and invest a little to learn from the best.
- Internet Banking: Internet banking is the new technological concept that help us know how much we are spending. With this young ones can keep a tab on how much they are spending. They can also put a limit on how much to spend a month and how much to save.
- Money Management Software: By registering themselves to an efficient money management software, teenagers would get to know about managing money online. Various features such as reminders, expense tracking, budget planning etc. would let them learn more beyond only saving money.