How Parents Can Help Their Teens With Financial Planning

“One of the things that’s really important for teens is making sure that they don’t get in credit trouble early on, because that can be really hard to dig out from,” Boroff explains. So understand how the credit system works and that you can use it to your advantage. For example, if you’re paying off balances every month, you can get ahead of the game by accumulating points, getting cash-back deals, and being set up for a higher credit score that will come in handy down the line. When it comes to saving money, the key is to just do it. Get the ball rolling. “I think for a lot of teens, when they first start making money, their impulse is to spend it,” Boroff says. And you should be able to spend some of it without any guilt. So it makes it a lot easier, and maybe a little more guilt free, to establish like, ‘Every time I make a $100, $20 is going to be saved,’ and the other $80 is fun money.'” Establishing some sort of saving habits so that you have a base or cushion for anything that comes up is something a teen should get used to doing. Encourage them to set goals and make sure that there’s money being applied toward those.

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