Jean Harris’ Tips for Teen Money Management

Today’s post features teen money management tips from Jean Harris, financial literacy facilitator.  Here, Jean shares the vital lessons one must learn in order to be financial responsible.  Note:  This doesn’t just apply to teens!  

“My dad told me there are 3 things that can be done with money. ‘You are either, Making, Managing or Spending it.  The area you pay the most attention to, will determine how much you money you have.  Remember to always, always:

         Have more money coming IN than going out

OWN more than you owe (net worth)’

Here are 10 tips focused on learning how to, Manage, Make and Spend.  The key to managing your money is applying your knowledge.  Before you start earning money or immediately after you start earning money, study and apply how to do the following:

Manage Money

1.           Budget your money – Needs vs. Wants –  to have more $ coming in than $ going out

2.           Measure your net worth (OWN more than you owe)

3.           Track your money – how to use and balance a checking account to avoid fees

4.           Save and invest money

Make Money

5.           Explore ways to make money

6.           Understand a paycheck when you work for someone else or if you start your own business, learn how to manage your revenue and expenses

Spend Money

7.           Plan and save before you spend – build your financial muscle by gaining WILLPOWER

8.           Find out your money management personality; Planner, Struggler, Denier, or Impulsive – terms used in ‘Building Wealth’, a Federal Reserve Board publication

9.           How to change and maintain a ‘Planner’ personality

10.       Learn the COST of using other people’s money (Credit vs. Charge cards and Secured vs. Unsecured Loans)”

Jean is currently a training specialist at Money Management International, where she delivers and develops curriculum for a number of counseling topics ranging from reverse mortgage to debt management.  She has an immense passion for financial literacy education and is working on creating a workbook on how to develop healthy financial perspectives and behaviors to achieve personal goals.  To contact Jean, click here.

© WealthQuest for Teens, Ltd., 2011 All rights reserved worldwide.


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