Money 101: Money Management for Teenagers

Money 101 For parents & teens Parents face numerous dilemmas about their kids and their kids' money: how much allowance to pay, when to open their bank accounts, how to teach the value of a dollar. Opinions and approaches may vary, but saving for a rainy day is always smart. Here's why. Watching the money grow Even at face value, putting a little away each day will grow into a fat piggy bank. Amount set aside each year • 1 year • 5 years • 10 years Note Not adjusted for infation $3,650 $1,825 $1,825 $913 $913 $455 $365 $183 $91 2013 Quarter Haif Dollar Dolar The average teen carries $30 in cash and keeps $742.70 in a savings account. Where teens stash their cash Teenagers spend and save through many financial means. Teens' financial portfolios 63% 23% 18% 9% 8% 5% 4% 1% THE UNITED STATES OF A MERICA ATM/ debit cards Pre-paid Parents credit They work hard for the money How do teens between 13 and 17 earn their money? By waiting on tables, babysitting, mowing lawns - even borrowing from their parents. What teens do to earn money, 2011 • 13- to 15-year-olds • 16- and 17 year olds 40% 35 30 25 20 15 10 OPEN Batysitting Pet care/ waik dogs Household chores run errands Tutor Work at Work at store Work at othet yard work restaurant business ABC BANK Lower- and higher-income teens are more likely than middle-income teens to have a credit card, rather than earn an allowance. 1234 5678 9000 Where teens get money, 2011 • 13. to 15-year-olds • 16- and 17-year-olds 60% 50 40 30 20 10 Parents Others Allowance Seling Things Borrowing Where does it all go? Teens between 13 and 17 spend money on a variety of expenses each week. 13 - 15 YEAR OLDS 16 - 17 YEAR OLDS 20% 29% eating out beverages 17% clothes and shoes snacks 37% 15% MIN candy 15% 29% eating out gas and car 13% MIN dothes 13% and shoes and dates 7% 11% 7% 11% movies & school lunch video games music 5 lessons for your teens Save for a rainy day Demonstrate your work Iethic Understand budgets Compound interest Be careful with credit A healthy personal finance plan starts with an action many of us struggle with saving From the time your kids are old enough to Children should understand that Mom and Dad have imited funds to use each From early on, your child Saving money every day is great - but vou can Credit cards are great tools for a healthy financial lifestyle - but, of course. they're not free money Teens need to know that from the start, and that to use a credit card, they need to plan carefully should understand that earn even more through d interest Talk money isn't something month. By learning about budgets - what they are, how they work, and why they're important - kids start employing these ideas with their own money to receive for free but something to earn by with your kids about how express their own desires try to teach them how to save for items big or small. working hard for it money earns interest over time and helps an account grow faster Editors' Notes Sources: Bureau of Labor Statistics, C+R Research, Youth Markets Alert Money Matters: How Much Money Teens have, Where They Get It, And What They Purchase And Save. Bank of America Money 101 For parents & teens Parents face numerous dilemmas about their kids and their kids' money: how much allowance to pay, when to open their bank accounts, how to teach the value of a dollar. Opinions and approaches may vary, but saving for a rainy day is always smart. Here's why. Watching the money grow Even at face value, putting a little away each day will grow into a fat piggy bank. Amount set aside each year • 1 year • 5 years • 10 years Note Not adjusted for infation $3,650 $1,825 $1,825 $913 $913 $455 $365 $183 $91 2013 Quarter Haif Dollar Dolar The average teen carries $30 in cash and keeps $742.70 in a savings account. Where teens stash their cash Teenagers spend and save through many financial means. Teens' financial portfolios 63% 23% 18% 9% 8% 5% 4% 1% THE UNITED STATES OF A MERICA ATM/ debit cards Pre-paid Parents credit They work hard for the money How do teens between 13 and 17 earn their money? By waiting on tables, babysitting, mowing lawns - even borrowing from their parents. What teens do to earn money, 2011 • 13- to 15-year-olds • 16- and 17 year olds 40% 35 30 25 20 15 10 OPEN Batysitting Pet care/ waik dogs Household chores run errands Tutor Work at Work at store Work at othet yard work restaurant business ABC BANK Lower- and higher-income teens are more likely than middle-income teens to have a credit card, rather than earn an allowance. 1234 5678 9000 Where teens get money, 2011 • 13. to 15-year-olds • 16- and 17-year-olds 60% 50 40 30 20 10 Parents Others Allowance Seling Things Borrowing Where does it all go? Teens between 13 and 17 spend money on a variety of expenses each week. 13 - 15 YEAR OLDS 16 - 17 YEAR OLDS 20% 29% eating out beverages 17% clothes and shoes snacks 37% 15% MIN candy 15% 29% eating out gas and car 13% MIN dothes 13% and shoes and dates 7% 11% 7% 11% movies & school lunch video games music 5 lessons for your teens Save for a rainy day Demonstrate your work Iethic Understand budgets Compound interest Be careful with credit A healthy personal finance plan starts with an action many of us struggle with saving From the time your kids are old enough to Children should understand that Mom and Dad have imited funds to use each From early on, your child Saving money every day is great - but vou can Credit cards are great tools for a healthy financial lifestyle - but, of course. they're not free money Teens need to know that from the start, and that to use a credit card, they need to plan carefully should understand that earn even more through d interest Talk money isn't something month. By learning about budgets - what they are, how they work, and why they're important - kids start employing these ideas with their own money to receive for free but something to earn by with your kids about how express their own desires try to teach them how to save for items big or small. working hard for it money earns interest over time and helps an account grow faster Editors' Notes Sources: Bureau of Labor Statistics, C+R Research, Youth Markets Alert Money Matters: How Much Money Teens have, Where They Get It, And What They Purchase And Save. Bank of America