If you are an employed or unemployed teenager you have to be very smart with the money you make. It is easy for teens to go out and spend money because the newest music CD, or latest fashion trend is always at your finger tips, but music and fashion will eventually become classic or vintage chic. This means you'll always be able to find it somewhere in a great trendy boutique, or online, but your future wont be fashionable or vintage chic if you do not prepare for it today. There are many things you can do and several other things you should do however, let's start with baby steps.
Smart Teens always talk to their parents, or guardians about money. Your parent may not be comfortable sharing with you how much income they are payed from their employers. Let them know you are not interested in knowing their salary, but more so in what bills are paid each month and the amount of the bills due. Knowing the total amount owed on the household bills will help you make better spending decisions about your own money. If you get $15.00 in a weekly allowance and you normally spend $12.00 per week in junk food, you are fully aware now that you may need to save $5-10.00 each week in case something comes up and you are not able to ask for additional allowance from your parents or guardian because the household bills need to be paid.
Always save 10-33% of your allowance or monies earned from working. This will allow you to have money when larger items need to be purchased. Larger purchases like the latest "Guitar Hero". This will also help you set financial goals by entrusting you to think about your purchases before you buy them and develop creative ways to raise more money for the things you want.
Smart Teens talk about money with their parents and set realistic financial goals that lead to financial success.
