In the past few years, teenagers have earned billions of dollars with part-time and summer jobs. Summer jobs pay well and help teens save money. American teens are wealthier and work harder than before, but not all of their interests center on clothes, music, and movies. Around 30% of working teens save money in order to go to college.

Kids these days are becoming more and more aware of their family’s source of income and financial status. They apply these money-spending principles when they venture out on their own.

Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely.

Here are some ways on how you, as a parent, can teach your teens to save those hard-earned bucks:

1. Lead by Example. With your lifestyle, the children will see how you spend your money.

If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep.

2. Help Your Teens Get a Bank Account. Establishing a bank account under their name would give them an instant financial responsibility.

Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough.

Their savings could go to their college tuition, or a big purchase like a car.

Additionally, it gives them a sense of accomplishment once they have saved up, with something concrete to show for it.

You may check out the special benefits that banks offer for teens who open their accounts at such an early age.

3. Construct a “Spending Plan”. Once they hear the word ‘budget’, teens tend to cringe at the mere thought of having to restrict the spending of their money.

Instead, you and your teen son or daughter could build a “spending plan”. This would get them excited, and think of ways on how they can wisely spend their savings.

Also, have them list down their earnings versus their expenses.

Let them know the difference between the items that they need and the luxury items that they want, which they can actually do without.

4. Make a “Mock” Investment in the Stock Market. Make them aware of the options that they have financially.

Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies who manufactures products that they like.

Monitor the stocks together and this would give them another option of investing their money in the future.

Emergency funds are considered to be a necessity as far as financial security is concerned.

Emergency funds can provide you with financial resources that you can resort to and depend on when an emergency arises such that when you are sick and have the burden of paying huge medical bills, or unexpected home or major car repair.

When you have no emergency fund, you can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.

However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” you can be secured with what emergency the future may bring. In doing this, it is recommended that you regard the emergency fund as an additional bill, to be punctually paid each month.

Yes, you can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.

What’s important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.

Not like an investment, the success of your long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.

In spite of your financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.

When you recognize and determine where your earnings are spent, then it will be easy for you to choose and make a decision where to trim down expenses. In other words, budget.

Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that you set up a goal so as to save. So set an emergency fund as your goal.

Checking, savings, money market accounts and “certificates of deposits”, are great places to keep your cash that might be needed on quick notice.

The amount saved from budgeting can either go to your savings goal, emergency fund or both. You could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.

One of the major issues that many people have with the family budget is the belief that such measures will limit the control they have over their money.

The fact is that the family budget simply acts as a guide so you know where the money you bring in must go on a monthly basis. The high cost of living in today’s society, wherever you may be, has made budgeting a priority among families.

Like diets, many of us have started on family budget only to see it wither away with time. Financial problems usually arise due to lack of proper budgeting skills, or failure to keep to the proposed budget. No matter how much income you may have, it is still important to keep track of your assets and liabilities, your earnings and expenses. Read more »

We all make money mistakes, Some of us enjoy gambling while others might like a little too much retail therapy. Sometimes, these habits can get out of control – that’s when debt rears its ugly head.

Here are some tips on Digging Yourself out of Debt Hole:

1. Admitting the Problem. A lot of people chalk up debt because they place great value on external possessions, like owning the latest cell phone model or the flashiest cars. Or perhaps they have an addition that needs addressing.

Once you have recognized what it is, it becomes easier to reverse your mindset from spending to saving.

2. Ask for Help. Whether you’re $500 or $5,000 in debt, you can go to the Credit Counseling and Debt Management Agency to learn how to better manage your money and equip yourself with the necessary skills to manage your finances.

Financial education will help put you in a better position to take responsibility for your financial well-being. The requisite knowledge and skills will help empower and help you take greater responsibility and control of your finances for the long-and short-term.

3. Live Below Your Means. If you find yourself in debt and want to dig yourself out of debt hole with help from your loved ones, you can – but it requires discipline and commitment.

Most people live within their means, but someone in debt should live below his means. If you can live on $1,500, for example, you can put aside that extra $100 from your pay rise.

Use annual increments and bonuses to pay off loans, or better yet, place some of them in your savings.

4. Automatic Deductions are your friend. If you don’t have your money automatically deducted from your pay cheque into your savings account.

In time, you will get used to doing without this amount. This will come in handy when you draw up a monthly repayment plan to clear your debt.

For instance, if you take home $3,000, put $300 aside in a separate account and lock it in there. To curb the temptation of making withdrawals, avoid having an ATM card for this account.

Thinking of cutting down your expenses on food ? Then you should read the following money saving tips on food. They will surely help you on reducing your food expenses. They are by no means comprehensive but they will be very useful.

For Coffee Drinkers. It is a good idea to re-use the grounded coffee once. Using coffee grounds two times or more will not greatly affect the taste of the coffee.

It is highly encouraged to do this using a filter that is permanent and avoid the paper variety. Keep the grounds refrigerated until using it the following day.

For Bread Lovers. Grocery stores sell bread that was made the day before at a much lower price. There is nothing wrong with eating bread that was made the day before since it still is good to eat.

If you have a lot of space in your refrigerator, store a lot for bigger savings. If you will eat the bread, you can defrost it using your microwave oven. Re-heat it every 30 seconds to prevent the edges of the bread from getting too hard.

When Buying the Grocery. Before going to the grocery, you should have already made a list of all the things that you really need. Prioritize basic goods and avoid buying things that you do not really need.

Observe the prices indicated on the displays. Remember, branded products cost considerably more than store brands. It is also a good idea to keep the receipt of your previous trip to the grocery and make it as a basis for your purchases on your next trip.

To have higher savings, buy more of the product. You can always store it in your refrigerator or in the house to minimize your trips to the grocery store.

When Eating Outside. If you are going to eat in a pricey restaurant, the best time for you to go there would be during lunch. Food during lunch usually costs less and this will be to your advantage.

When staying at the hotel on your trips, it is a good idea to check if they also include breakfast in your total room charge. You should also find out where the locals eat. Chances are, they will eat where the food is great and the price is even better.

When going around, carry with you some snacks. A chocolate bar, chips, and cookies will go a long way while strolling around.

Eating cheaply does not necessarily mean eating bad food. Look around and you will be surprised at the options you can choose from. Take time and consider your choices so that you will not only eat a lot but save some money also.