As teens start high school and prepare to enter college, their parents will often teach them the value of financial responsibility by setting up a savings account for their child. Managing a savings account can be challenging for a teen because of all of the temptations to spend money. But there are a few things teens can do to learn how to make their money last.
A prepaid debit card is a good way to spend only what you have and not spend all of your savings. Designate a small amount each week to be put into your debit account and then your debit card can help you manage your spending. A debit card is not a credit card, but it can be used in the same way. The difference is that when the money is gone on a debit card, you cannot spend anymore. That will help you manage your finances.
Split your savings into two segments. One segment is the money you will not touch and the other is the money available to you for spending. It is unreasonable to expect you as a teenager to not spend money. But if you only have access to part of your savings, then you can limit your spending. Give your parents control over the part of your account that is for saving to prevent you from using it.
Share expenses with friends. When you travel with friends, learn to share gas and food costs. Avoid buying things you do not need and plan how you will spend your money in advance to help you understand where your money will go.
Saving money is difficult for teenagers. But learning good savings habits early in life can make you a better money manager as you get older.