This is a guest post by DiAna Kelley, founder of the Giving Me Life Foundation, a nonprofit organization that teaches strategies about monthly budgeting, credit, and financial retirement to teenagers and young adults in order to create healthy financial lifestyles.
Below, DiAna focuses on tips about earning money for things they are good at, the importance of saving early, and talking to their parents about opening an account so that they can see their money grow.
So you and your student are getting ready to think about high school and all the excitement it may bring. High school is a once in a lifetime experience for many students. Many will begin to think about school dances, extracurricular activities, colleges, but what about saving money?
It’s never too early to think about saving and budgeting money. With all of the costs associated with school activities and the rising cost of college, many students and parents are thinking about the best ways to save for the costly years ahead. Here are some tips to help you and your students save money for those expenses.
1. Look at what your student is good at and help them earn money for it. Is your child good at babysitting, dog sitting, mowing lawns, tutoring? Whatever gifts they have can help them earn money. The best part is your child can set their own hours and prices for doing the things they love.
2. Get the Greenlight card and app. The Greenlight card is an excellent way to teach students about budgeting money and managing an account using a debit card. It is also a great tool to help parents monitor how and when their students are spending their money. As parents you can transfer money onto your child’s Greenlight card instantly anytime. You can also monitor how they spend, approve or decline requests for money from your kids, and even determine which stores they can use their Greenlight card for purchases.
3. Set a goal to save money each year you are in school and stash it away into a savings account.
4. Learn how to create a budget. See if your student can write down all the things that they would need money for during the school year and the cost of it. Then total up the amount you would need for that year. Your student may need an adult to help with their budget. Once you know how much you need for the year, then you can divide that amount over 12 months and set aside an amount you have to earn for all of your expenses.
Let me give you an example: If all of your student’s expenses for that school year comes up to $500, then divide it by 12 which is about $42. So if your student completes chores around the house and charges your neighbors and friends for doing what they are good at, your student could easily get $42 a month. Say you rounded that amount up to $50. Then your student would have enough money to cover any expenses and save money into their account. It may take some practice, but trust me your student will see their money grow.
Stay tuned for more personal finance tips from DiAna to come!
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More about the Author:
DiAna Kelley, a native of Boston Massachusetts, has over 10 years of experience in retail banking and financial services. Working in the area of banking, she saw a great need to teach teens how to understand budgeting and money management. Her passion is to teach students money management skills early, so that will have the tools to make smart financial decisions in their future. She uses her combined knowledge and experience to provide resources and host workshops in the community through her nonprofit organization Giving Me Life Foundation, Inc.
More about the foundation:
Giving Me Life Foundation, Inc. is a nonprofit organization that teaches strategies about monthly budgeting, credit, and financial retirement to teenagers and young adults in order to create healthy financial lifestyles. For more information about this organization please visit www.givingmelife.org.