Saving pocket money is a life skill that will help your children become financially responsible adults. With the help of a banking app for teens, you can easily teach your kids the basics of saving and budgeting.
Banking for teenagers is becoming increasingly popular, as it provides an easy way for parents to monitor their children’s spending and savings habits. Here are the ways you can use a banking app to teach your kids how to save pocket money:
- Set financial goals for your teenage son and daughter and encourage them to follow them. It would help if you also guided them to track progress towards achieving these financial goals. This is the basic step.
- Teens are often short on cash, so you can use an online payment app or an ATM card for teens to teach your kids how to pay for things online rather than carrying around a wad of notes.
- You can also set up an allowance with a cash card that teens have to spend rather than saving it all in their accounts – this will help them learn about the importance of budgeting!
- You don’t have to restrict your kids from using their phones – instead, you can teach them how the apps related to banking for teens work by setting up a savings account in which they can deposit a set amount of money each week.
- You can use banking apps to teach your children about the value of credit – for example, you might hand them a $20 gift card and tell them they have to save $1 from each meal until they have enough to pay it off in full.
- Teens often spend money on social media and games, so set up an allowance for important things – like savings, chores, or extracurricular activities.
- Let your teens decide how much money they want to start with for their savings account – but be sure to remind them that your goal is to have a certain amount of cash in their account when they turn 18.
- If you’re struggling with debt, talk to your kids about the importance of living below your means and sticking to a budget, even if it’s just for a few months or until you get back on top of things.
- Help your kids start an emergency savings account if they inherit or find themselves unexpectedly without work.
- Teach them how to budget by setting up separate buckets – one for household spending and another for personal spending – and how much money each bucket should contain at the beginning of each month.
- Teach them about the importance of saving for emergencies and investing in good health insurance to ensure their future well-being.
- Encourage them to start a savings account for their first car or house.
Wrapping up:
Here comes the last step. Assessing a teenager’s feelings about finance is the most important step before discussing it. Some kids feel too young to talk about money, and others may be terrified. If your child feels uncomfortable with the topic, talk about material things first—a new toy or stuffed animal, for example—and then move on to discussing saving for a specific goal.
