Being a teenager often comes with newfound financial independence, especially if that teen has started to work either full or part-time. It’s an exciting time, but it’s also the ideal time to learn how to be careful with money and how to spend wisely rather than just buying the first thing they see that they want.
This can be a hard lesson to learn, but it’s a crucial one if they’re going to be good with money later in life as well when there are more bills to pay, including housing costs. With that in mind, here are some of the things that you could suggest your teenager spends their money on so they don’t waste it.
Car Ownership And Driving Lessons
One of the most important financial decisions teenagers face is whether to invest in a car and driving lessons. They might be tempted to get a car, but there are lots of responsibilities to think about too. This is why this decision is one they certainly shouldn’t just rush into – they’ll need to think about all the costs that come with car ownership, from maintenance to fuel and, of course, insurance.
This is why this is such a great thing for a teenager to spend their money on. Because of the sheer fact that they’ll have to consider every aspect, it will give them a real appreciation of just what it takes to manage money. They’ll need to decide what kind of car to buy, what their budget is, what lessons to take, and so on. There is a lot to think about in just one purchase, so it’s a fantastic way for them to get started.
Saving For The Future
Another good way to learn about financial responsibility is by saving for the future. Although this might not sound like much fun, it is something that can save a lot of pain and upset as the years go by, and it will mean they’ll be a lot less likely to get into debt, which can be a terrible financial hole to get into.
You can help them save by opening up a good bank account for them to put their money into – or at least some of it. If they have some money to spend as they like but save as much as possible, they’ll be less tempted to use their savings on things they don’t really need – that’s what their ‘fun money’ is for. By saving from an early age, teenagers will have a financial safety net for unforeseen problems in the future, and they’ll handle money a lot better too.
Experiences And Personal Growth
While being responsible with money is vital, teenagers should also allocate a portion of their earnings towards experiences and personal growth. Exploring new opportunities, participating in extracurricular activities, or attending events can contribute to their personal development and really broaden their horizons as they get more and more interested in various things.
Investing in hobbies and passions can be an excellent way for teenagers to spend their money. Whether it’s music lessons, joining a sports club, doing art, or anything else, these things might pave the way for a future career, but even if they don’t, they can definitely help the teen develop.