Tuesday, January 14, 2014

Money management tips for teenager

A teenager should be able to manage the money. This is useful for them. Someday, they must manage the money when they grow up. They should know to earmark money for the specific spending. They are still young and they need the guidance from the parrent. Here are the money management tips for teenagers:

1. Find the jobs
I saw so many teenager works at restaurant. In my country, some tenagers make wood box for fruit. They can get half dollar from there, which is precious in my country. If you have so much opportune to make money, you can try it. Warren Buffet also made money by collecting bottle cap when he was young.

2. Being Frugal
You are not the son of rich dad so you should not live extravagant. Do not spend your money to unwarranted or unnecessary things. They do not buy the story book that does not necessary for them. They can hire the book from friend or library to save some dollar.

3. Avoid the credit card
Some credit card company hunt the extravagant teenager. They want to increase the profit from the credit card holder. The credit card holder should pay the interest and the administration fee at the end of month. More you spend your money, more interest that you should pay.
If you cannot pay the credit card, the collector may terror you. They know that the teenager does not understand anything. They can be intimidate easily. Finally, the parent will pay the credit card.

4. Construct the financial plan
What is your ideal? Some kids has ideal so must the teenagers. They can start saving to buy a big purchase. Perhaps, they want a new nintendo nds or video games. They can collect penny by penny to buy it. They can save the penny at the cash box or piggy bank first.

5. Budgeting
It is not difficult to budget your money. List what you buy last month. It will not be large different for the next month spending.
Why we should avoid

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