Hitting those later teen years means hitting some exciting milestones. This could be getting your driver’s license, your first real job, and graduating high school & heading off to start the next phase of your life. But before leaving the nest, it’s important that an older teen learns more about handling their money. Here are some tips for those teenage years.
START BUILDING CREDIT
The earlier a teen is able to start building their credit, the better. One component of an overall credit score is the length of your credit history. So, if a teen opens their first credit card at age 16, they’ll have a jumpstart on those who don’t open their first card until they are in college. Cyprus Credit Union offers a Teen Visa to help teach teens about the power of credit. In order to be eligible for a Teen Visa, a teen must be a member of Cyprus Credit Union, have a qualified co-maker, and must use the card responsibly.
Some of the benefits of a Teen Visa include:
- Low rates
- Great way to establish credit
- Free mobile banking
- Free access to more than 28,000 ATMs nationwide
- Verified by Visa protection
- Accepted everywhere that takes Visa
When those teenaged years arrive, so do new responsibilities. This could be a car, first job, credit cards, and saving for the future. It’s important that teens start taking more responsibility with how and where they are using their money. No credit card purchases should be made unless there is a plan to get it paid off. While it’s incredibly easy for your credit score to fall (missing payments, spending too much, etc.) it’s just as difficult to raise it again. The more responsible a teen is now, the better off their financial future will be.
COVER OWN EXPENSES
As soon as a teen has their own source of income, they should start covering at least a few of their expenses. This could be gas for the car, new clothes, or entertainment. In order to cover these expenses they should be tracking their spending and creating a budget for them to follow.