Jim Henry

__The longer you do something, the more it becomes ingrained as a habit. 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.__ 

For your first good money habit, start with spending. More specifically, staying on top of it. It’s important to know where your money is going and you can’t do that unless you track it. If you haven’t downloaded the new [MoneyWise app](https://moneywise.app.link/media), do it today  and start using it.

It will help you establish a budget based on the simple but effective “envelope system” and allows you to monitor all of your transactions. This is especially helpful if you’ve started *bad* habits, like hanging out 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.

## Your next good money habit 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 kick around ideas to save money.

Good money habit for teens number three is A.B.S., Always Be Saving. Another way to say this is “pay *yourself* first.” Whether you receive money as a gift or for working, 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 that consistently before you spend even a penny, 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 regularly 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.

And while you’re establishing the *saving* habit, you can do the same for *__giving__*. 

## Understand that God owns everything and that 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 church. We often say tithing is just the “training wheels” of giving. Look for other ways you can glorify God with your giving of time talent and treasure.

Good money habit for teens number four 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, paying 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 quickly lead you into debt if you’re not careful. To avoid that, refer back to good habit number one: stay on top of your spending and stay on budget.

The fifth and final good money habit for teens is studying how to manage money wisely. You may think that you study enough already for school, but learning more about how the financial world works will pay huge dividends. Your future self will thank you.

## Of course, there’s no better way to learn about money 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.

But also spend time learning about the nuts and bolts of managing money wisely. Educate yourself about credit scores, avoiding debt, 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.

__And again, the [MoneyWise app](https://moneywise.app.link/media) 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.__

FaithFi

Articles

It’s never too early to establish wise habits for managing money, especially if you’re a teenager.

MANAGE | Jul 26, 2021

5 Good Money Habits for Teens

By: Jim Henry

Where Faith Meets Finance

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