As parents who carry all buries of the family, it would be hard for you if you don’t master the field of finance. As teenagers, approaching adults is also a difficult task that requires you to grow in all skills, especially money management. The best option for you to follow is absolutely the well-known 6 Jars. And here is our best advice for our most commonly asked questions.
6 Jars: The Wise Choice For Parents And Teens
Controlling your finances can be a lengthy process requiring quite a bit of stubbornness. But in fact, money management doesn’t have to be such a troublesome task if you have the method of the 6 Jars System. The concept comes from the book “Secrets of the millionaire mind” by T Harv Eker, and its idea is really simple to understand. Basically, you just have to split all of your earnings into 6 separate jars, each of which will have a distinct function and serve a different purpose in your way to financial independence.
- Necessity Account (NEC – 55%)
- Financial Freedom Account (FFA – 10%)
- Long-term Saving Account (LTS – 10%)
- Education Account (EDU – 10%)
- Play Account (PLY – 10%)
- Give Account (GIV – 5%)
It would be really convenient if there is an application that recapitulates all of these 6 jars to help you deal with your financial stress. And actually, THERE IS AN APPLIANCE like that in fact! It’s down below!
6 Jars: FAQs About Financial Tips For Teens
How do you manage pocket money?
If you’ve come across way too many $20 bills while doing your kid’s laundry, your frustration over poorly managed pocket money is probably pretty strong. To teach better teenage money management skills, make them earn their pocket money rather than forking it over every Friday night. If a weekly allowance doesn’t work for your family, consider making a price list for jobs around the house so they can create their own income.
How can a teenager stop spending money?
For starters, you can stop giving it to them – but that doesn’t foster finance skills for teens, it simply punishes them. Alternatively, try to encourage their saving habit with some juicy incentives. For example, you might consider matching a portion of their monthly contributions to their teenage savings account. Another great financial tip for teens is to suggest they carry cash rather than a debit card; seeing the cold, hard bills drain from their wallet will motivate them to hang onto them a little longer!
Why is teenage money important?
Not because your daughter wants a designer purse or your son needs the latest Nikes. It’s important to teach personal finance to teens in order to pave the way for responsible spending in college, financial planning for the future, and family budgeting when it comes time to start thinking about your little grandchildren down the road.
How do I teach my teenager to manage money?
A great place to start is by signing up for the online personal finance tools at Mint and showing your teen how they work.