Teens

As a teen, you’re beginning to make some grown-up decisions about how to save and spend your money. That’s why learning the right ways to manage money right from the start is important. Here are some suggestions.

• Save some money before you're tempted to spend it.
  
  Pay yourself first by putting at least 10 percent, possibly more, into a savings or investment account. Put your spare change to use by collecting loose coins in a jar and eventually depositing them into a savings account.
• Keep track of your spending.
  Budget your money or develop a spending plan by deciding on a maximum amount you aim to spend each week or month.
• Consider a part-time or summer job.
  Talk with your parents about the best job to fit your daily schedule, whether it’s babysitting, mowing lawns or a job in a “real” business. Working outside of your home can provide you with income, new skills and references that can be useful after high school or college.
• Think before you buy.
  Before making a purchase, especially a big purchase, ask yourself if you really need or just want the item, and if you can truly afford the purchase without having to cut back on spending for something else.
• Be careful with cards.
  Under most state laws, you must be at least 18 years old to obtain your own credit card and be held responsible for repaying the debt.
  Teens who do own credit cards should be aware of the financial consequences of making purchases on credit. Discover® Card offers a Paydown Planner that helps cardholders understand exactly what impact varying their monthly payments will have, and how long it will take them to pay down their entire balance. For more information, visit www.discovercard.com/paydown/.
  Debit cards automatically deduct purchases from your checking account. To learn more visit the CASH 2.0 section on this site.
• Protect yourself from crooks who target teens.
  Even if you don’t have a checking account or credit card, a criminal who learns your name, address and Social Security number may be able to obtain a new credit card using your name to make purchases. Be very suspicious of requests for your information that can come by phone, e-mail, text message or in the mail.
  To learn more about how to protect your finances when using a debit card, visit the Safe and Secure section on this site.
• Be smart about college.
  If you’re planning to go to college, learn about your options for saving or borrowing money for what could be a major expense – from tuition to books, fees and housing.
  Consider the costs when you search for a school. Otherwise, when you graduate, your college debts could be high and may limit your options when it comes to a career path or where you can afford to live.

The above information is an excerpt taken from a new Federal Deposit Insurance Corporation (FDIC) publication titled, "Money Tips for All Ages: Your Finances at Different Stages in Life." The advice, in a special edition of the agency's quarterly FDIC Consumer News, can be read or printed online at www.fdic.gov/consumers/consumer/news/cnspr08.