Earn 4% APY* with an InRoads Smart Start Savings account.
Teens and Tweens: Here's What You Should Know
Learn How to Build Your Credit, Understand Taxes, and Save for Tomorrow
It’s never too early to start learning about credit, taxes, and how to save for the future. Whether you’re a tween or a teenager with big goals, InRoads and BALANCE have some quick tips to help you get started.
Discover Balance Webinars
Every month, BALANCE Financial Fitness hosts an online webinar. These informative classes are free to InRoads members, including tweens and teens. Check out this month’s webinar and sign up today.
Do You Understand Money?
Honestly, nobody really fully understands money and finances. But there is something called financial literacy. Being financially literate means you understand certain banking terms, budgeting, credit, saving for the future, and fun topics like taxes. Let’s cover these one topic at a time.
-
- Building Credit: With your parent’s help, get yourself a low-limit credit card. But don’t go crazy. Use it sparingly to help build your credit history and show that you can make timely payments. To really build credit history, buy something for around $100 and pay it off slowly by making the minimum monthly payment. But DO NOT MISS A SINGLE PAYMENT. It takes time to build up your credit, but if you miss a single payment, it can negatively affect you for years.
- Understand Taxes: When you start working, you’ll pay federal (and sometimes state) taxes. While paying income taxes is easy when it’s automatically taken out of your paycheck, filing your annual taxes can be a bit more difficult. Ask your parents or another adult to help you file your taxes the first time (in April). The IRS (Internal Revenue Service) offers free filing options, including guided online filing and fillable forms.
- Save for the Future: Whether you plan to save for college or put money away to get you started after high school, saving a little every month is a smart move. Start by opening a savings account. Then, set up your first financial goal, like buying a car or computer. Now, automate your savings with automatic transfers from your checking account to your special savings account. With some time and dedication, that account will grow quickly.
- Building Credit: With your parent’s help, get yourself a low-limit credit card. But don’t go crazy. Use it sparingly to help build your credit history and show that you can make timely payments. To really build credit history, buy something for around $100 and pay it off slowly by making the minimum monthly payment. But DO NOT MISS A SINGLE PAYMENT. It takes time to build up your credit, but if you miss a single payment, it can negatively affect you for years.
Your InRoads to the Future Starts Now
The InRoads team is here to help you open your first or next savings account, apply for a credit card, and more. We can even help pay for college with the annual InRoads college scholarship.