Six Money Management Tips for Teens

It might seem a little self-serving for a bank to write about the importance of financial literacy during April and Financial Literacy Month, but the topic is so much more important than increasing deposits at our bank – or an annual celebration, for that matter.

Let us explain.

What is financial literacy? 

We like the definition used by Jump$tart, a coalition of national partners and state affiliates that work collectively and collaboratively to advance financial literacy.  They define it as “the ability to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security.”

As a small, community bank, we look at financial literacy not just how it shapes the individuals, but also how it shapes the community.  At the heart of every thriving community lies a foundation of sound financial knowledge and practices.

A financially literate population contributes to the stability and growth of our local economy. When individuals manage their finances successfully, they are better positioned to invest in local businesses, support community initiatives, and contribute to economic development. By fostering a culture of financial literacy, we foster economic resilience and vitality within our communities.

At Fidelity Bank, we believe that financial education should start early in life.  We understand the importance of helping our community’s youth build a strong financial foundation so that they better understand basic concepts like budgeting, simple interest, and establishing and maintaining good credit. These basic concepts can help them tackle unexpected financial situations or prepare for significant life milestones like paying for college, purchasing a home, opening a business, or building a nest egg.

Fidelity Bank offers the following for Gen Z and their parents:

Six Money Management Tips For Teens

1. Set Specific Measurable Attainable Realistic Trackable goals. Choose your priorities—whether it’s saving for a computer or building an emergency fund—and make sure they are achievable. Create a plan of action and measure your progress over time.

2. Start a savings account (if you don’t have one already). Fidelity Bank offers automatic transfer services to move a set amount from your checking account to savings monthly.

3. For working-age students, consider part-time or seasonal employment. You will learn more about personal responsibility and have an opportunity to manage expenses.

4. Track your spending and avoid making impulse purchases. Create a budget and review it periodically to make necessary adjustments.

5. Gain perspective about risk and reward. Knowing how stocks, bonds and mutual funds can affect an investment portfolio shows you how financial decisions can grow—or shrink—your savings. Some high school classes and financial literacy-based websites, provide simulations of how these investments work in the real world.

6. Learn about credit scores—a representation of your financial past, present, and future. Fidelity Bank offers tips to help you establish and improve and maintain good credit with our FREE Credit Sense tool on our mobile app.

Learn About Credit with Fidelity Bank's Credit Sense

When enrolled in online banking at Fidelity Bank, we give you access to securely check your credit score through the website portal, Credit Sense, or through the Fidelity Bank mobile app. You’ll be able to see tips for improving your score, get alerts when your credit score changes, and monitor your credit score on demand. There’s no hard pull on your credit, so you can check your score as often as you’d like.

Fidelity Kids Savings Account

For those wanting to get an even earlier start on saving and budgeting, we have our Fidelity Kids Savings Account.  The primary account holder must be 17 years or younger.  It takes only $5 to open and account holders earn interest with as little as an average $0.01 average daily balance.  A parent or legal guardian must accompany the child to open an account – which can be done at any of our branches.

Having the knowledge about how to best manage your money is just the start. When young adults practice proper money management techniques early, they’re more inclined to make effective financial decisions throughout life. The sooner your children start to grasp these concepts, the more apt they’ll be for a better financial future and help build stronger communities. 

Learn more about all of our products and services at Fidelity-Bank.com.