Teaching children and teens how to manage their money

Teaching children and teens how to manage their money

Published: Tuesday, Dec. 18 2012 6:30 a.m. MST

Financial planning

1. Set a financial plan: Set goals. Develop a spending plan (budget) based on these goals. Save automatically with direct deposit. For children and teens this may mean only $5 a month, but it gets them in the habit of saving.

2. Become a savvy consumer: Separate your needs from your wants. Don't fall prey to peer pressure. Take advantage of free resources that schools have to offer, such as career counseling services and workshops. Seek out student discounts. Don't become dependent on a vehicle. AAA estimates car ownership in 2012 is $8,946 per year.

3. Understand financial aid packages and loans: Is it a loan you need to repay with or without interest while you are in school? Is it a federal loan or a private loan? Are scholarships or grants available?

4. Make school your first job. Many students work full or part time while in school. Work doesn't have to interfere with getting good grades, but you do need to manage your time carefully. For college students, taking longer to graduate because you are not doing well will cost more money in the long run.

5. Build good credit. Approximately, 50 percent of prospective employers will want to check your credit report and may or may not hire you based on what they see. In a competitive job market, you will need to present your best, and good credit allows you to take out a loan for big purchases like a car or a house at a low interest rate.

Source: Personal Money Management Center at the University of Utah

Financial planning

1. Set a financial plan: Set goals. Develop a spending plan (budget) based on these goals. Save automatically with direct deposit. For children and teens this may mean only $5 a month, but it gets them in the habit of saving.

2. Become a savvy consumer: Separate your needs from your wants. Don't fall prey to peer pressure. Take advantage of free resources that schools have to offer, such as career counseling services and workshops. Seek out student discounts. Don't become dependent on a vehicle. AAA estimates car ownership in 2012 is $8,946 per year.

3. Understand financial aid packages and loans: Is it a loan you need to repay with or without interest while you are in school? Is it a federal loan or a private loan? Are scholarships or grants available?

4. Make school your first job. Many students work full or part time while in school. Work doesn't have to interfere with getting good grades, but you do need to manage your time carefully. For college students, taking longer to graduate because you are not doing well will cost more money in the long run.

5. Build good credit. Approximately, 50 percent of prospective employers will want to check your credit report and may or may not hire you based on what they see. In a competitive job market, you will need to present your best, and good credit allows you to take out a loan for big purchases like a car or a house at a low interest rate.

Source: Personal Money Management Center at the University of Utah

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