High schoolers are getting closer to adulthood, and that means having their own money and all the responsibilities that come along with it. According to a 2019 teen personal finance survey by Junior Achievement, 39 percent of teens between 13 and 18 have no bank account, and 32 percent receive allowances for doing chores.1 If you have high school age children or grandchildren, you can help them start to think about saving money and preparing for what lies ahead.
1. Set Goals
Teens must determine what their financial goals are, whether saving for college, planning to get their own apartment, or saving for a new car. Whatever their goals might be, whether they're short-term or long-term, it's never too early to figure them out and start putting together a plan. By doing some research, high schoolers can get an idea of what it will cost them to attain their goals, and they'll have a starting point for saving money.
2. Create a Budget
For young people, having their own money is still a relatively new concept, and it can be overwhelming trying to figure out how to manage that money. If they create a budget now, it will help them reach their goals while instilling good money habits that can help them throughout their adult life. They should figure out what expenses they have, how much they'll need to set aside to pay for them, and what they’ll have left for other purposes.
3. Get a Job
If they don't have a job, they are likely relying on parents for the bulk of their income. When they reach legal working age, it's a good idea for them to get started in the workforce right away. The earlier they start generating income, the better they can prepare for the future. The job market is wide open right now, so they should be encouraged to find an employer that's a good fit, start gaining work experience, and learning what it's like to earn a salary. They'll probably have to work part time to fit with their school schedule and make sure their work schedule allows them to manage their academic life. As long as they can do that, they should start working and start earning.
4. Open a Bank Account
If your child or grandchild is already 18 years old, they can open up a checking account so they can easily access their money, write checks, and use a debit card to pay for purchases and expenses. If they're younger, you can open a joint account with them so they can start learning about how to use a checking account before they have one completely on their own. They can also look into a savings account or you can help them look into Nevada State Bank's Young Savers accounts.
5. Utilize Student Discounts
Many businesses offer student discounts to high school students who have a valid school ID. Businesses tend to see students as new entrants into their market who can become valuable customers over time. A high school student can use this to their advantage and save money at a variety of stores, restaurants, and on various services from car insurance to travel. Students can check with businesses online to find those who offer such discounts and use this information to decide where to spend their money.
6. Learn to Cook
The student may still live at home and have their meals provided to them, but teenagers are often tempted to eat out frequently, especially once they are driving and have their own income. While it's okay to do so sometimes, they can spend a lot more eating out compared to eating at home. They should be encouraged to use their time at home to learn how to cook so they can be confident buying groceries and cooking their own meals. This is a skill that will prove invaluable as they get older.
7. Avoid Spending Temptations
When high school students start earning their own money, they might be tempted to start spending it just as quickly. They now have the ability to buy items that their parents might not have purchased for them, and this comes with a sense of financial freedom that they've never had in the past. They may be tempted to spend money on concert tickets or expensive brand-name clothes, and some of that is to be expected. Discuss “needs versus wants” with them, but then stand back and let them learn for themselves what happens when money is wasted on “wants” and none is left over for “needs.” Hard lessons like that are all part of growing up.
Your children or grandchildren might be in high school right now, but it won't be long before graduation arrives, and they're ready to move on to the next chapter of their life. A solid financial foundation will make that transition smoother. High schoolers should learn money management skills now to make their life easier and more successful later.