Parents can provide their teens with a valuable life skill by teaching them how to save money. This skill doesn’t always come naturally—to either teens or adults. The temptation for teens—and adults—often is to spend money as soon as it’s earned. Fortunately, teens can take steps to develop money-saving skills that will serve them well once they reach adulthood.
Commit To Saving - The Motley Fool financial website recommends teens practice a simple money-saving trick: save before spending. This means that every time a teen comes into money, whether from a weekly allowance, baby-sitting or a part-time job, the teen should set aside a portion of the dollars as savings. They should then put that money into the bank. This should be done before teens spend any of the dollars they earn.
Open A Checking Account - Teens who open a checking account will often be more motivated to save more money, according to financial website Money Instructor. A checking account gives them an out-of-sight place to put their money. By opening a checking account, teens can also learn about interest, which might inspire them to save even more money.
Earn Matching Grants From Mom And Dad - The Motley Fool website recommends teens ask their parents to match every dollar they save. So, if a teen saves £10 during the week, his parents would provide him with a matching £10. Not all parents will go for this, of course, but some parents might match half the teen's savings. Instead of providing a matching £10, they might give £5.
Have a Goal - Teens tend to save more money when they have a goal, according to the Kiplinger.com article "Getting Teens to Save (Without Nagging)." Perhaps they want to save £100 for a trip next summer or £150 for a new iPod. Maybe they even want to start socking away money to help pay for college. It's easier for most people to save their money if they have a purpose for their saving, according to the article.