Help your teen (and yourself) start building wealth today!
Tips and strategies for getting started in personal finance to set them (and yourself) up for success.
- Start budgeting. Setting a budget for income, expenses, and savings can help your teen track their spending habits and ensure that their money is allocated properly.
- Save. Encourage your teen to set aside a portion of their income each month and put it toward savings. This will help them build wealth in the long run.
- Invest. Investing in stocks, ETFs or mutual funds is a great way to start building wealth and diversifying assets. Consider talking to a financial advisor to discuss the best options for your teen’s specific needs.
- Pay off debt. Make sure your teen is aware of any credit card debt they may have and prioritize paying it off. This will help them establish a good credit score and give them a better chance at getting approved for loans in the future.
- Use cash more often. Encourage your teen to use cash instead of credit cards for purchases. This will help them stay within their budget and avoid overspending.
- Monitor their credit score. Help them understand the importance of monitoring their credit score and making sure it’s accurate. This will help them make better financial decisions and build good credit. Explain that a good money reputation will allow for future borrowing and investing.
- Have an emergency fund. Make sure your teen has a separate savings account for emergencies that covers 3-6 months of expenses. This will help them cover unexpected costs without having to take on more debt.
- Research. Encourage your teen to research and understand the different investments and financial products available to them. This will help them make informed decisions and understand the risks involved.
