5 Good Money Habits for Teens
The longer you do something the more it becomes a habit. And that’s not necessarily a bad thing. Establishing good habits early in life will be a blessing for years to come. It’s never too early to establish wise habits for managing money, especially if you’re a teenager. Today, we’ll give you five of them, and these are great habits to start anytime in life. 1. Stay on top of spending. It’s always important to know where your money is going; but you can’t do that unless you track it. The MoneyWise app helps you by establishing a budget based on the envelope system. You can monitor all of your transactions and catch bad habits before they get out of hand. While you're at it, consider getting a cash back debit card that will earn money back on your purchases. Just make sure they’re budgeted. 2. Get a budget buddy. Two heads are better than one and you can challenge each other to stay on budget and look for ways to save money. 3. Always Be Saving (ABS). Another way to say it is pay yourself first. When you deposit money into your checking account, transfer a portion of it to savings. Do this before you spend even a penny and do it consistently, even if it’s only a few dollars a week. The important thing is to establish the habit of saving. And while you're establishing the saving habit, you can do the same for giving. 4. Build a good credit rating. Parents can set up a secured credit card for you that lets you deposit a certain amount into an account that the bank holds as collateral for the card. You can then make small, budgeted purchases up to your limit, which is the amount on deposit. Then you pay the card off in full each month. As you do that, you’ll start to establish a good credit history and score. But remember that having credit is a double-edge sword. It can be a real convenience or it can lead you into debt if you’re not careful. To avoid that, refer back to habit number 1 to stay on top of your spending and stay on budget. 5. Learn how to manage money wisely. There’s no better way to do that than by studying God’s Word. The Bible has more than 2,300 verses related to the wise use of money and possessions. As you study Scripture, be on the lookout for them and consider how they apply to your life. Proverbs and Jesus’ parables are particularly rich in God’s financial principles. Also, educate yourself about credit scores, avoiding debt, and the best ways to save for college and yes, even retirement. Those things might seem far off right now, but they’ll become very important before you know it. And remember, the MoneyWise app has hundreds of great articles about managing money from a godly perspective. Get in the habit of reading one a day and sharing what you’ve learned with friends. The knowledge you gain will carry you well as you prepare to venture out into life on your own. On today’s program we also answer the following listener questions: --What do you think about downsizing your home and paying cash for a new, smaller house? --I have some money with Vanguard in a 401(k). However, I want to do more Christian-friendly, ethical investing. What thoughts do you have on this? --We bought a piece of land some time ago for $26,000. It’s now worth about $80,000. Do we have to pay capital gains tax on this? Remember, you can call in to ask your questions 24/7 at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can listen to past programs, connect with a MoneyWise Coach, and even download free, helpful resources like the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for the very latest discussion! And remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.