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Tips for Teens: Saving and Managing Your Own Money

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By FDIC

As a teen, you start taking more responsibility for handling money and choosing how you want to save or use it. Here are a few ideas to help make your decisions easier…and better:

  • Consider a part-time or summer job. A job can provide you with additional money as well as new skills, and connections to people who may be helpful after you graduate.

  • Open a savings account and put money in it for specific goals. Get in the habit of putting at least 10 percent of any gifts or earnings in a savings account right away. Saving a certain percentage of your income before you’re tempted to spend it is what financial advisors call “paying yourself first.”

  • If you’re ready for a checking account, choose one carefully. Many banks offer accounts geared to teens or other students that require less money to open and charge lower fees than their other accounts.

  • Once you have a bank account, keep a close eye on it. Watch your balance the best way you can. For example, keep receipts and record expenses so you don’t spend more money than you have in your account and run the risk of overdraft costs.

  • Understand that borrowing money comes with costs and responsibilities. When you borrow money, you generally will repay the money monthly and pay interest. Always compare offers to borrow money based on the Annual Percentage Rate (APR). The lower the APR, the less you will pay in interest.

Get more tips on managing getting started with money management from the FDIC.