As your kids grow, the decisions they make surrounding money become more important, and teaching the young adults in your life about budgeting is no walk in the park. Don’t believe us? Just try to explain the importance of a checking and saving account without seeing eyes start to roll! But what if there was a simpler way? Keep reading to learn some practical budgeting tips to share with your teen as well as some tech solutions.
5 Steps to Teaching Budgeting
Showing your teen just how important checking accounts, saving accounts and credit cards are to their overall finances is no easy task. However, you definitely don’t want them to be surprised when the bills start rolling in! Check out 5 simple steps to teaching budgeting:
1. Develop a list of recurring monthly expenses.
2. List total incoming money (e. a part-time job).
3. Subtract expenses from total income to see if the budget makes sense.
4. If the expenses outweigh the income, figure out how to cut unnecessary expenses.
5. Develop a savings strategy if there is leftover money!
Budgeting Apps for Teens
Since your teen is likely always on their smartphone, have them download one (or all) of these three apps to help them handle their daily budgeting on the go.
This free app (and website) provides all-around financial and budgeting services. When your teen sets up their account, they have the opportunity to schedule a call with a LearnVest planner to discuss budgeting goals and tips. They offer a seven-step program to help your young adult organize, focus, plan, protect, build, maximize and achieve!
This app allows you to see all of your finances at a glance, including your balances and transactions. It pulls all of the information into one place so your teen can see how they’re spending their money daily, weekly and monthly. It also updates automatically, so they can crunch numbers in real time. The best part of the app for your teen? It analyzes their spending and saving to offer useful budgeting tips!
If the above apps are a bit too complicated for your teen, SimpleTrack is definitely the way to go. This budgeting app is as easy as it gets — it tracks how much money is left in each of your budgets. You can categorize your expenses in the app, marking spending with labels like “Dining Out” and “Fun Money.” Every purchase can also be geotagged so your teen can remember exactly where their money goes!