If you mentor a teenager, more than likely you’ve listened as they shared their desires to buy the latest fashions, gadgets, or for some, even a car. Earning their own money to do these things is now possible as they begin securing after-school jobs and summer employment. Having money is exciting and empowering, however many young people are not exposed to the practical steps of how to manage it.
Financial literacy is consistently listed as a “top 10” of what teens need to be independent and successful. Yet, young people often do not learn about personal finance at school or at home. Budgeting and saving takes practice and discipline. With so many things competing for their currency, and buying is a click away, teens can benefit from financial literacy 101.
ABC Bank of Austin suggests three steps to building a budget;
- Keep track of your spending
- Identify your income and expenses
- Analyze cash flow and look for ways to increase your income and decrease expenses