WHY START NOW
• As a parent, you know your kids’ spending habits better than anyone
else—including them.
• Teens need to know there are consequences for poor spending habits.
It’s better to find out now rather than later when it could lead to
serious debt or a bad credit score.
• Their sphere of influence widens immensely once in college, and
parental influence tends to decrease.
TEEN BUDGETING BASICS
Pigg offered a few suggestions for balancing necessary expenses with “fun
money” and saving for the future:
“Out of sight, out of mind” saving. Open a savings account for
your teens and have them deposit a set amount of each paycheck or allowance so it builds up for their future. Set an amount you’re both comfortable with and stick with it. Savings accounts like the CU Succeed Teen
Savings Account offered by Guardian Credit Union earn interest, meaning
your teens’ money works for them while they save, showing them how
money management pays off — literally.
extra credit
Take our budget challenge.
Get more information and see if your family passes the test.
Visit www.potentialmagazine.com to download the budget challenge
and access other budgeting resources.
E
W
!
Good grades make money. Some auto insurance companies offer
discounts for teens earning good grades, which means motivation for
academics while saving money at the same time!
Teaching your teens to budget is a hands-on, critical learning process
requiring engagement from you and your kids. Creating a budget for
them, handing it over and expecting them to follow it won’t work unless
you guide them and lead by example. Start the process now, and rest easy
later knowing your teen has the skills and knowledge to make intelligent
financial decisions that set them up for future success.
N
CHECKING
Automagically rounds up
your debit card purchases
and puts the change in
your savings account.
We match it at 50% for
the first month. 5% after
that. Up to $300 a year!
FEDERALLY INSURED BY NCUA
www.potentialmagazine.com
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