If we watch kids’ spending and credit card debts in close quarters, you will see the importance of money management for kids. In fact, money management adds to many values in their life at a much younger age. Apart from imparting the skills for minimal spending, money management for teenagers ensures discipline, financial self-reliance and order in their day-to-day life.
Indeed, teenagers have a myriad of tools when it comes to decision making regarding money management. Many of them allow parents to supervise the teenagers’ spending behavior. Even though they prepare the monthly worksheet, parents review the same and hence it deals with making the teenagers accountable for the decision making in this regard.
Let us see how parents could motivate children towards effective money management. Teen checking accounts, prepaid debit cards, Budget papers etc. might help them manage money in better ways.
Teen checking accounts
Teen checking accounts help teenagers open a teen checking account via the recommendation of a parent or a legal guardian. Almost all banks allow teenagers in getting an ATM card to handle the account. In fact, they could check for the online account management feature. A checking account for teens ensures financial responsibility. It is important to value money and the time taken to build up a substantial amount. Banks offer checkbooks and help the teenager to monitor the spending.
Prepaid debit cards
The purpose of prepaid debit card is to allow teenagers to develop the qualities of financial independence and accountability. Debit cards are issued via parents. By engaging in different activities, the teens can make money. Once the entire work is over, parents can deposit the money in the account. The teenager can handle the money management via online interface. The spending details are tracked and saved while the money management is done through prepaid debit cards.
Budget Planners and money management worksheets
Budget Planners allow the students to account for their money transactions. Many online websites provide interactive tools such as work sheets for money management. It facilitates money management for kids and verifies what constitutes their spending. The kids could choose a money management simulator that insists on spending on a particular situation.
It is also possible for kids to explore the opportunities for money management with the aid of different investment products. They could obtain certificate of deposits or savings bonds. Apart from acquainting with the factors that lead to money growth, getting familiar with investment options helps kids earn financial benefits by way of profits as well.