As a young person, considering anything finance-related can seem light years away. In reality, knowing how to manage your finances and plan for the future should occur in your early years. This will help in learning responsibility at a young age, giving you a clearer perspective on money management. Learning how to appreciate money and use it wisely at a young age will also help with accumulating savings and being able to do things without going into debt.

Here are a few tips:

Get a financial education

It’s wise to know about finances as you are going through grade school. Learning how to write a check, balance a checkbook, what a stock and bond is, and how credit cards and credit works are all important. The more education you have, the better prepared you will be.

Open an account

tax planning 2015 bostonHaving a savings or checking account can assist in learning how to save money. Young adults should have some mechanism that will allow them to save and watch their money work for them. Learning how to save for what you want, while earning some interest on that money will impart good finance habits early on.

Find ways to earn money

Learning how to earn and appreciate money should come at a young age. This means saving some of your allowance, taking on small jobs and perhaps getting a job in high school prior to graduating to contribute to your future endeavors. This also helps in being responsible for money and will paint a clearer picture of how much things cost and how quickly large sums can be blown.


learn about money for teenagersThinking about whether or not you want to go to college should happen as you’re going through middle and high school. Even though this is a major investment, it can pay off in the future. Getting your degree while you’re still young and don’t have as many responsibilities is advantageous. Additionally, you or your parents will qualify for education credits that can help during tax time.

Parents may wonder whether or not their teenager should file a tax return if they are working. There are certain criteria that will help you determine whether or not they should file. You should look at how much your teenager made and whether or not they can be claimed as a dependent on your tax return.

There are limits to how much they can make before they are required to file. If they earned less than $6,300 in 2015, they do not have to file.

What makes the teenager a dependent?

  • If the teenager is under the age of 19 up to age 24 and a full-time student,
  • If they live with you more than 50% of the year; and
  • If they do not provide more than half of their financial support.

As your young adult begins to work more, having a background in finances can help them avoid excessive debt. If they obtain a credit card, teaching them how to be responsible in using the credit card will make a huge difference in the way they view money. Additionally, educating them on student loans and how they can potentially get out of hand is also very important.

These tips and suggestions should assist in keeping your young child or teenager financially aware and prepared to use money wisely, as well as make responsible decisions on how their money is used now and in the future.