Allegiance Credit Union Blog

Smart Money Moves: Budgeting and Saving Strategies for Teens

Written by Allegiance Credit Union | Nov 4, 2024 7:00:00 PM

Blog Highlights:

Budgeting: The Power of Being Money-Smart

The sooner teens understand that being money-smart is the key to having a successful financial future, the better! From being financially independent to achieving life goals like buying a home, budgeting, and saving is as important as it gets!

Why Financial Savviness Matters from a Young Age

Becoming financially savvy at a young age teaches teens to avoid common financial mistakes that often lead to debt like impulse spending, failing to have an emergency fund, and not budgeting properly. A solid financial education now can lead to good money habits and a great financial future.

How Allegiance Supports Teen Financial Education

Allegiance Credit Union is committed to your teen’s financial education with a variety of tools, programs, and accounts designed just for them. We offer a Teen Checking Account for teens ages 14-17 to help them build a solid financial foundation and learn how to use a debit card with parental oversight, as well as a Personal Savings Account to help them develop strong savings habits. In addition, Allegiance offers free money management and credit counseling for teens, as well as a Mobile Banking App for easy account management. We are here to help your teen learn smart money moves for a successful financial future.

Mastering Money Management: Budgeting Basics

Budgeting is one of the most important things to learn when it comes to money. Understanding what you earn and what you owe means understanding exactly what you can afford. Learning budgeting skills as a teen will help you navigate your finances and lead to good money choices as an adult!

What is a Budget and Why Do You Need One?

It is a savvy financial move to learn as much as you can about budgeting which includes info about earning, saving, spending, credit, investing, and protecting your money. Basic budgeting is a very important part of your financial education and should begin as soon as you begin earning money. 

Budgeting Basics: Managing Your Money

  • Be aware of your income and expenses
  • Know the difference between what you want and what you need
  • Keep impulse spending in check with a good budget
  • Prioritize payments to creditors before splurging 
  • Track your budget success and make necessary changes

How to Create Your First Budget with Allegiance

Allegiance makes budgeting quick and easy with our Mobile Banking App. Control your money, spending, and savings, while keeping your budget in check. Download these free budgeting templates today to create your first budget! 

Saving Smart: Developing Long-Term Habits

Don’t underestimate the importance of setting and achieving saving goals. Saving for your future is a valuable part of your financial education and is a direct pathway to your financial success. Building a savings account at Allegiance Credit Union can help deal with unexpected costs as well as meet your saving goals for things like buying a car, financing a home, and enjoying your retirement. 

The Rule of Saving: Why Consistency Wins

Saving money is no easy task. It takes discipline and a good financial education to understand that learning consistent saving habits now will help you build financial stability later. And while you may not be able to afford to save much now, the money really adds up. Over time, saving will become second nature to you and will provide a good backup plan when unexpected things come up in life.

Practical Saving Tips and Tricks for Teens

Ready to open a Teen Checking Account or Personal Savings Account at Allegiance Credit Union to start saving? Here are some savings tips to help you get started!

  • Budgeting: Tracking your spending by having a solid budgeting plan is simply genius! Taking control of your finances as a teen will only lead to smarter money decisions throughout your life.
  • Make Savings a Habit: Setting aside a percentage of your earnings for savings when budgeting is a great smart money habit. Savvy teens can take advantage of your job’s direct deposit and have money sent to your savings account every payday. 
  • Control Spending: It’s hard to say no to things we want and it’s easy to be tempted to overspend. Save money by looking for sales, researching costs online, and using coupon codes when making purchases. 
  • Set Saving Goals: Whether your dream of having a certain amount of money in your account or just enough to buy a new laptop, setting and achieving your saving goals rewards your dedication. It also shows you that saving money is the key to having the things you want and need.

Enhancing Financial Skills with Allegiance’s Digital Tools

Allegiance Credit Union is committed to your teen’s financial education with a variety of tools, programs, and accounts designed just for them. Here are some of the most popular ones.

  • Using the Allegiance Mobile App to Keep Track of Your Finances
    Designed to keep you connected to your finances no matter where you go, the Allegiance Credit Union Mobile Banking App offers access to your accounts from anywhere. From account alerts and credit monitoring to card control options and sending electronic funds, Allegiance Mobile Banking App lets you track your money anytime. 
  • The Convenience of Mobile Wallets
    The future of safe and convenient money transactions is contactless, which is why Allegiance Credit Union offers members the extra security of using a mobile wallet. Since there is no card info on your mobile devices, the encryption and data technology in the chip takes over to protect your accounts against scammers. 
  • Benefits of a Dedicated Teen Checking Account 
    Teens need a checking account dedicated specifically to their needs helping them build financial knowledge and habits. Allegiance's Teen Checking Account is for teens from 14 to 17 and features a debit card and mobile app to help them stay on top of their finances.

Setting and Achieving Financial Goals

Setting realistic financial goals is the key to achieving them. These tips will help you successfully meet and exceed your goals. 

  • Make a list of your financial goals 
  • Create a financial plan to meet those goals 
  • Contribute to savings on a regular basis
  • Pay off as much debt as you can
  • Create an emergency fund 
  • Give yourself a deadline to motivate your saving

Building a Bright Financial Future with Allegiance Credit Union

At Allegiance, we provide financial opportunities for people of all ages, in all stages of life, with unique financial situations. Making good financial decisions starts with a good understanding of finances in general. That is why we offer blogs, eBooks, Checklists, and financial calculators to help members of all ages take the next step toward their version of financial freedom.

Ready to open a Teen Checking Account at Allegiance Credit Union and start saving? We make it easy for your teens to learn money moves with an account created just for them! Apply today to set your teen on the right path to financial independence today!

Budgeting and saving strategies are just the beginning when it comes to educating your teen. Explore our Swipe Safely: Teen Debit Card Checklist to spread the word on the best habits to start early!