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Teen Money Management

Category: Personal Finance
Date Published: 7/8/08

This website can help you find a job - but once you’re earning a steady income you’ll need to carefully manage it. Basic principles concerning money management can help you build healthy habits, and help you earn and save more money in the long run. See the list of guidelines below for more advice and specific techniques.

1) Get a bank account. Using your own personal account will help you keep track of your finances on a general level. This is an important first step. It may be beneficial to get a both a savings and checking account. This will allow you to divide your money more conspicuously.

2) Put a significant portion of your income away in “permanent” savings. A good rule of thumb is to put away 50%, but this could vary depending on how much you’re earning or other factors.

3) The other half of your income should be divided into everyday disposable income, and more medium-term desirable purchases. The exact amount that goes into each depends on how much you normally spend in either of those categories, and how much you earn. Everyday expenses might be in the 10% - 20% range.

4) Keep records. Your bank account statements will keep track of basic deposits and withdrawals. However, if you want to organize your finances more effectively, you should keep your own records of all your earnings, purchases, expenses, budgeting, etc.