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Teens Can Capitalize on Summer Incomes

Submitted by admin on Tue, 08/28/2007 - 22:33.

North Palm Beach, Fl (6/11/02)--Teens can make the most of their summer incomes with a little planning. By creating a budget and sticking to it, they can save for the future and still have fun this summer(Bankrate.com).

To develop a realistic spending plan, teens should:

  • Calculate how much money they will earn over the summer. Use this formula: total summer income equals paycheck amount (gross pay minus taxes)times the number of paychecks.

  • Set a savings goal for the summer. A good rule of thumb is to save 50% what they earn. Once a goal has been set, divide that amount by the number of paychecks to know how much money to put in a savings account each pay period.

  • Create a spending plan. They can start by listing everything they plan to spend money on, as well as prices, then sorting those items as unavoidable expenses (needs) and personal desires (wants). And teens should remember that in addition to saving for the future, they should set aside some money for summer fun.