When I was a teen I wished someone had sat me down and taught me some basic money rules. I went to university got my first credit card and by the end of my first year I was in debt. Not good! With this being the last year my teen is taking high school courses I want her to know how to me money smart. So what rules would I want for my daughter? For any teen getting ready for the next stage in life? Here are my money rules:
Keep a Money Journal
By writing it down and keeping a money journal you can see where you are spending your cash. By doing so, you see your money habits and where you might want to change things. Get a small notebook you can toss in your bag. Yes, you could use an app to do this. There are several now available.
Save for a Rainy Day
You never know when you may experience an emergency, and no an emergency is not the purchase of a want like the newest tech toy. Try and save at least 10% of what you bring in till you have enough to cover at least three months of expenses. This is your emergency fund. My teen has become an expert in savings, and I am proud of her efforts in this area. She saves 25% of her monthly income.
Spend Less than what You Earn
When you spend less than you earn now, you are caring about your future. Does your future matter to you? Then you want to take care of it by watching what you spend now.
Watch Out for Credit Card Debt
Your need to be very careful in how you use your credit card. Think does that night out warrant it going on your card? Do you need that interest adding up? Are you able to pay the balance at the end of the month?
A Sale is Not Always a Good Deal
People often think that a sale means a great deal. What if you do not need that new pair of shoes? That new tech toy? You need to learn to shop with a list. What do you really need? Buy with a purpose and a plan. As well if you are putting that sale item on a credit card that you do not pay off every month, you lose the savings.
Set Money Goals
What do you really want? What are your plans? Do you want to travel? Graduate debt free? Have money for the future? Set your goals, then put a plan in place to help you get there but remembering these rules you are well on your way to achieving them.
Let me know what money rules would you want your kids to know.