The longer you do something the more it becomes a habit. And that’s not necessarily a bad thing. Establishing good habits early in life will be a blessing for years to come. It’s never too early to establish wise habits for managing money, especially if you’re a teenager. We’ll give you five of them, and these are great habits to start anytime in life. 
<ul><li>Let’s start with spending and staying on top of it. It’s always important to know where your money is going; but you can’t do that unless you track it. If you haven’t done it already, download and start using the new MoneyWise app. It helps you establish a budget. It’s based on the envelope system and allows you to monitor all of your transactions. This is especially helpful if you’ve started some bad habits like spending too much time at the mall where spending is always a temptation or buying “designer” coffee everyday. The MoneyWise app can generate reports that show where you need to curb your spending to stay on budget.</li><li>You might consider getting a cash back debit card that will earn money back on your purchases. Just make sure they’re budgeted.</li><li>Our next good money habit for teens is to get a budget buddy. That way you can rein in each other’s impulse spending. Two heads are better than one and you can challenge each other to stay on budget and look for ways to save money. If you decide to eat lunch out with a friend, maybe you can share an entree. Buy a full size sub and split it. Portion sizes at many restaurants are big enough that you won’t go hungry until dinner time.</li><li>Good money habit for teens number 3 is ABS, “Always Be Saving.” Another way to say it is “pay yourself first.” When you get money as a birthday or Christmas present or a paycheck from a part time job, get into the habit of saving a certain percentage of it. If you have a checking account set up, link it to a savings account at an online bank. Once you deposit the money into checking, transfer a portion of it to savings. Do this before you spend even a penny and do it consistently, even if it’s only a few dollars a week. The important thing is to establish the habit of saving. If you have money coming in consistently from an allowance or part time work, you can set up automatic transfers from checking to savings. It’s a habit you’ll never regret. No one has ever told us they saved too much!</li><li>And while you’re establishing the saving habit, you can do the same for giving. Understand that God owns everything. He’s your ultimate provider. He directs every penny that comes your way. You want to show your gratitude by faithfully giving a percentage of your income to His Kingdom, starting with your local church. And remember, we often say tithing is just the “training wheels” of giving. Look for other ways you can glorify God with your giving.</li><li>The 4th good money habit for teens is building a good credit rating. You might want to ask your parents to set up a secured credit card for you. With a secured credit card, you deposit a certain amount into that account and then you can make small, budgeted purchases. Then you pay them off in full each month. As you do that, you’ll start to establish a good credit history and score. But remember that having credit is a double-edge sword. It can be a real convenience or it can lead you into debt if you’re not careful. To avoid that, refer back to habit number 1 to stay on top of your spending and stay on budget.</li><li>Our 5th and final good habit for teens is to study how to manage money wisely. Trust me, learning how the financial world works will pay huge dividends. And of course, there’s no better way to do that than by studying God’s Word. The Bible has more than 2,300 verses related to the wise use of money and possessions. As you study Scripture, be on the lookout for them and consider how they apply to your life. Proverbs and Jesus’ parables are particularly rich in God’s financial principles. Also, educate yourself about credit scores, avoiding debt, and the best ways to save for college and yes, even retirement. Those things might seem far off right now, but they’ll become very important before you know it.</li><li>The MoneyWise app has hundreds of great articles about managing money from a godly perspective. Get in the habit of reading one a day and sharing what you’ve learned with friends. The knowledge you gain will carry you well as you prepare to venture out into life on your own.</li></ul>On this program we also answer your questions:
<ul><li>What do you think about downsizing your home and paying cash for a new, smaller house?</li><li>I have some money with Vanguard in a 401(k). However, I want to do more Christian-friendly, ethical investing. What thoughts do you have on this?</li><li>We bought a piece of land some time ago for $26,000. It’s now worth about $80,000. Do we have to pay capital gains tax on this?</li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a>
where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Establishing good habits early in life will be a blessing for years to come. It’s never too early to establish wise habits for managing money, especially if you’re a teenager. We’ll give you five, and these are great habits to start anytime in life.

5 Good Money Habits for Teens

FaithFi | Jul 27, 2021

Show Notes

Where Faith Meets Finance

You May Also Like