Dollars and sense: Approaches to money management for teens

May 6, 2024

While managing money can seem daunting, learning and applying the right strategies can make it a rewarding endeavor. This article offers practical advice tailored for teens who are interested in improving their financial management skills.

The Basics of Budgeting

Learn how to create a budget that reflects your income and expenses. Understand the importance of distinguishing between wants (like the latest gadgets) and needs (such as school supplies). Start by tracking all your expenditures for a month to see where your money goes.

Saving Strategies

Explore effective saving strategies that could help you work towards your financial goals. Learn about setting aside a fixed percentage of your allowance or job income. Consider using Modak's savings feature, which supports your savings efforts by giving you the option to allocate a predetermined portion of your funds into a savings account. This feature is designed to assist you in prioritizing savings, potentially helping to build your reserves more consistently.

Financial Planning Tools

Use digital tools and apps designed to help teens manage money wisely. Digital tools like the Modak app can assist in tracking your spending and adhering to your budget. These tools can offer alerts for unusual spending patterns and provide insights into your financial habits.

Earning Extra

Explore ways to earn money, from part-time jobs to freelancing opportunities like tutoring or digital artwork. Look into local gigs such as pet sitting or lawn mowing that can offer flexible schedules and good pay. Don’t forget to take advantage of Modak’s chores feature; by completing tasks your parents list, you can earn extra money directly through the app, enhancing your income with each task you finish.

Good money management is an important skill that can serve you well throughout life. Start now by embracing these practices, and you may find yourself saving for the things you want sooner while building a strong financial foundation for the future. As you grow, these habits will evolve and assist you in managing more significant financial decisions with confidence.

* Modak is a Financial Technology company and not a FDIC-insured bank. Checking account and Modak Visa® debit card are provided by Lewis & Clark Bank, Member FDICThe FDIC's deposit insurance coverage only protects against the failure of a FDIC-insured depository institution.

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Modak is a financial technology company and not a FDIC-insured bank

Checking account and the Modak Visa® debit card issued by Lewis & Clark Bank, Member FDIC.

Funds deposited into Checking may be eligible for up to $250,000 of FDIC insurance.

The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured depository institution.

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