5 Money Tips for Teens

By Fairport Wealth

Financial Tips for Teens

Luma Wealth’s summer interns, Reema and Esther, want to guide their peers toward financial wellness. They have been researching ways teenagers and young adults can learn more about managing money and develop responsible habits; and they have the following suggestions to help your kids achieve financial wellness.

1. Get educated. The best way to become financially fit is to become financially literate. In addition to the resources available from Luma Wealth, there are many reputable online tools, such as a stock market simulator on Investopedia, podcasts geared toward young adults including The Money Jar(from Junior Achievement), Popcorn Finance, and Million Bazillion for younger kids.
2. Save for college. Putting away money in a 529 plan offers several benefits. Most importantly, funds saved will reduce the need for student loans. In addition, the money in a 529 plan grows tax free and remains tax free when spent on qualified expenses. And Ohio offers parents a $4,000 tax deduction per child, per year. You can use the money to pay for college or for trade school, and certificate programs* (like the course Reema is taking at Vanderbilt). For information on college costs and the different plan options, visit collegesavings.org.
3. Get a job. Having your own source of income is empowering, as it gives you a greater sense of independence. It also helps you develop work-related skills and build your resume and network. You can check with local business owners to see if they are hiring – many businesses need help during after school hours and on the weekends.

4. Open your own bank account. You’ll need a place to keep your money; and having your own bank account will teach you how to track and manage your finances. However, if you’re under 18, you’ll need to have your parent as a co-owner of the account. When evaluating your options, ask about fees (including out of network ATM fees) and protections to avoid overdraft.

5. Watch how much you spend. As Benjamin Franklin famously said, “a penny saved is a penny earned.” Budgeting is important to help you keep more of what you earn. There are free tools available to help, such as the one you can sign up for on Mint.

Our goal is to help you, and your kids, feel in control of your financial future. To empower your future, please join us for our next event!

* Learn All About Saving for Higher Education, Ohio’s 529. https://www.collegeadvantage.com/learn