Teen Work Budgeting Tips Summer Job

If you are a teen who is going to work over the summer, you will have to handle your earnings wisely. Because you are likely to only work a lot of hours until the new school year arrives, it is especially crucial for you to save a lot of money and avoid spending too much. You will learn budgeting tips to use as a teen who has a summer job.

The first thing you should do is adhere to the ten-percent rule which says you should save at least ten percent of what you earn. Each time you get your paycheck, you should deposit at least ten percent of the total amount into a savings account. If you do that, you should be relatively secure for a while.

It is vital to plan for life after high school. After you graduate, you will either need to get a permanent job or start attending a university or vocational school. If you do not move into a dormitory, you will either remain at home while attending school or move out into your own apartment or house due to having a full-time job. If you choose to stay at home, your parents might decide to start charging you rent.

One way or another, you will have to be financially ready. It would be a wise idea to save at least fifty to sixty percent of what you earn each summer as money you will not touch until you finish high school. You should look into putting this money into a long-term certificate of deposit at your bank. By following this process, you will have enough money to tide you over for a while until you find a permanent job.

After you put a total of sixty to seventy percent of your check into the bank, you will have to budget for business expenses and discretionary spending. If you mow lawns and drive to work, you must set aside money for gasoline. Once you pay for any supplies you need to conduct your work with, you can use the remainder of your earnings to pay for snacks, entertainment, etc. Be careful in regard to how many snacks you buy because you need to make sure that you have enough left over to see a movie or go out on a date at least once or twice a month.

You have learned budgeting tips that apply to teens who have summer jobs. Heed these suggestions to handle the money you earn wisely and prepare for your future.