Whether teens are thinking about going to college, buying a car, or going out with friends to the movies, all of these require money. Once teens enter the work world, they should learn how to deal with their money, but admittedly, many aren’t sure where to start.
Colleen Pagano is a teacher for the personal finance course at McDowell High School. Her class is for students interested in learning about financing and budgeting for the future and focuses on banking, budgeting, car and home purchases, loans, and interests in bank reconciliation. “This class is very real-world. Everything you experience in the class you will experience in the future,” Pagano said.
The best way to start financing is to start planning. Budgeting can help with all of the problems someone might encounter while managing money. For anyone to be successful in money management, they must learn to plan their expenses and their savings, according to Pagano. Beginning to understand finances early will help teens to save and be responsible about handling it, and resisting the urge to spend hard earned cash on useless things.
Jakob Parmeter, a lifeguard for McDowell’s pool, advised teens to use their money wisely. He talked about how you can only sort your money out so much because at 15 you don’t have too many bills to pay. Planning his expenses is very important to him because he is saving for a car. “My pay check all goes into a savings account,” Parmeter said.
If someone starts financing their money at a younger age Pagano said the “easier it will be for them to do it when they are older.”
As soon as someone has a steady income they should think about a budget, but how much a person chooses to save varies by person. A helpful tip from Pagano is to start saving enough money for three months worth of expenses.
Megan Vommaro is a sophomore who has been working at Chick-fil-A for five months. She puts half of her monthly income into a savings account and the other half in a spending account. She’s saving up for college and believes this will help her as a future college student.
To avoid financial fiascos and overspending, people must make sure that they absolutely know their income and don’t spend more than they have according to MoneyAndStuff.info, a free educational resource from financial experts at Ohio’s credit unions. Being aware of one’s expenses and purchases can help to avoid exceeding the limit and help to know what they can cut from their budget when in a tough spot.
Parameter admits that knowing and keeping track of his expenses is the hardest part for him, but he suggests that to be successful teens should have a plan before they start earning money.
Any of these suggestions can be helpful so that once you have money coming in, it won’t just fly out the window like your daydreams.