Kid’s grow up fast and before you know it they will be moving out. Here are some of the most important things that they should be saving for now before it’s too late.
Higher Education- College tuition rates are increasing every year. It is becoming one of the biggest reasons for debt in our country, even more than credit card debt. Now, who pays for college? The student? The parents? This expense doesn’t have to be the parents if teens would start saving for it now. Setting up a college savings plan early on will benefit not only the student, but also save parents from forking out outrageous amounts of money or going into debt.
Cars- The day your kids turn 16 they will want two things. A driver’s license and a car. Saving for a car doesn’t have to be that difficult, especially if they are getting one that is used. If possible, set up arrangements to match the dollar amount that your teen can save. This will be an incentive for your teen to save more and work harder during their summer or part time jobs.
Technology- If you have teenagers, you know how expensive technology is getting. From the latest phone to the phone bill, prices are going up and will only continue to do so as technology advances. Be ready for this! Invite your teen to take responsibility in splitting the bill and paying for their latest smart phone.
Emergency savings- You never know what is going to happen and having an emergency savings could be one of the most important things your teen saves for. Teaching them to have an emergency savings now will only be beneficial for their future in saving for a family.
Remember that everyone learns best by example. Help your teen by setting goals and a using a savings account for setting aside money for the future.