You may have taught your teen to use a piggy bank as a child, but now he has more reasons to save, and the reasons usually come with more expensive price tags. Teach your teen to save money by reviewing the items he may want to save for and depositing the money in a savings account.
There are four main reasons why teenagers may want to save money:
Save Money for the Time You Can't Work:
You'll want to help your teen to save money for times when he will not be able to work. If your teen had a summer job, for instance, you should help him learn to save money for when the seasonal job ends or when school work takes a priority.
Save Money for Bargains:
Teach your teen the benefit of saving money for an unexpected bargain. For instance, a chance to buy some long-desired ski gear at a liquidation sale or the opportunity to buy an expensive, but used item from a friend. Having the money set aside will help your teen with the chance to take advantage of a surprise bargain.
Save Money for Emergencies:
Help your teen learn to save money for an emergency. For instance, computer repairs, car repairs, or other unexpected emergencies. One of the best ways to learn this money skill is for your teen to experience an emergency when he is short on cash. Take the opportunity just after it happens to help him set aside money for emergencies in the future.
Save Money for Large Purchases:
Your teen will eventually want to save money to buy a big ticket item. Buying a computer or expensive technology will probably be on your teen's wish list at some point during his teen years. Help them learn to set aside money each week until he has enough to purchase the large item. Sometimes, creating a matching program for your teen is a helpful incentive to get him started.
