by Jared Falk

Created on: June 12, 2009

Financial decisions one makes as a teenager can have an impact the rest of their life. Your money management can either help or hurt you in the future depending on what you do with the money you have. Teenagers need to be taught how to manage money well because it will affect their lives later on. In this article, we will discuss some tips that are ever so important to their future; the earlier, the better.

The very first piece of advice I would ever give a teenager about money management would be: get a job or start a business. Money is no object, but it is finite. Money spent needs to be replenished and any job will pay a lot better than interest made at a bank. Birthday money, allowance, and money made off poker are chump change compared to one two-week paycheck. Minimum wage or not, getting a job will help you in the future, not only because of the money you'll be saving, but the work experience you are attaining.

Next, start a savings account. Just because you have money does not mean you should spend it. Sure all the guys have the new cell phone, or all the other girls have the popular hairstyle; but you have a brain, and you have money, and you are going to use them both wisely. Starting a savings account is not a money-maker, but a money-saver. Interest on small amounts of money cannot even buy you gum anymore, so don't think that's the reason. A savings account is discipline: telling you that you need to save and store away what you earn and not to take it out. The best way to discipline yourself with this is to create a goal. Set a realistic dollar amount and a date, and really see if you can make it; this can actually be fun.

It is now time to set a budget. You can't be expected to put all of your money into savings every time, so give yourself some spending money for gas, food, or important bills. But don't spoil yourself and be unrealistic; and definitely don't fall into the monthly payment trap. Add up your important bills, add five to ten percent, keep it as cash and put the rest into savings. For times that you go over or under your budget, use a good old fashioned piggy bank. Putting extra cash in for low months and robbing it in tight months is a good way to stay away from the forbidden savings account.

Credit is tricky, but you need to establish a credit score. The best way to get a credit score is to start with a gas card. With a gas card, you can only buy gas; this helps to keep you away from those tempting, unnecessary purchases. Pay your card off by the due date and look, you just established a hint of credit. Now repeat that several dozen times without a hitch and you'll be golden!

Be smart about your purchasing. Using your brain instead of your ego will help your future, you have my word. A used, economical car will save you money across the board. New gadgets will be obsolete in a year, so if you must buy something, buy one that has decent features and is decently priced.

Before you know it, you'll be in your mid-twenties, have good credit, and enough in the bank to do whatever you desire for your life. Whether it be a house, college, that dream car, travel, a spouse, or a baby; you will be thankful someone was watching out for you and even more thankful that you listened.

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