Accounting: Teens and Kids
Everyone earns money or spends money, and most people do both. But when the time comes for you to earn your own money, do you know what to do with it? Managing your money is an important skill that you want to learn early. When you develop positive financial habits while you’re young, they will carry you into adulthood, giving you a head start on earning the money that you want and spending it responsibly. While accountants spend every day working to manage money for individuals and companies, you don’t need to be an accountant to do a good job incorporating smart money ideas, including things like saving and budgeting, into your everyday routine.
What Is Accounting?
Accounting has been around for a long time. Many people trace it to a merchant named Luca Pacioli back in 1494. He made it a point to keep track of the money that he was earning through his business and the money that he was spending. But even in ancient times, individuals kept track of the goods and services that they bartered with one another. Then, when money hit the scene, people started keeping track of it and doing their best to manage it responsibly. Whether you run a business or are just dealing with your own personal finances, it’s important to keep an accounting of your money. If you don’t, how do you know when some is missing? How will you know how long it takes to save up for something big that you’ve really wanted for a long time?
- The History of Accounting
- The Role of Accounting
- What Is Accounting?
- Accounting Concepts (PDF)
- Why Is Financial Accounting Important?
Part of accounting is budgeting, which shows you how much money is coming in and helps you plan your spending. It might be a summer job or even your allowance that’s bringing in the cash. Then, you need to determine how much you are going to spend. Maybe you borrowed money from your parents for something at the store, or maybe you need to pay for new wheels for your bike. It’s important to decide how you want to spend all of the money that you get. Another important concept to understand is the difference between debit and credit. A debit is taking money out of the account that you already have and spending it. For instance, a debit card takes money out of your checking account. However, a credit card is different. With credit, you are borrowing money from someone else, usually a bank, to make a purchase. Now, you owe a debt to the bank, and it needs to be paid off in a certain amount of time or the amount that you owe will increase.
- Budgeting Basics (PDF)
- Building a Healthy Balance Sheet Early in Life (PDF)
- The Family Food Budget
- Budgeting Basics: Why Have a Spending Plan? (PDF)
- Top Ten Budgeting Basics for Teens
If you enjoy numbers and keeping track of money, a career in accounting could be for you. There are many jobs that center on accounting. You could be a bookkeeping clerk and keep track of the ledger of a business. You could be an auditor who looks over financial records and ensures that they are all accurate and valid. If you have a real interest in business, you could be the vice president of finance for a company or a corporate controller, working to keep an eye on all of the employees who manage the company’s finances. For those who have always wanted an exciting job that keeps them on the edge of their seats, it’s possible to become a forensic accountant for a government agency. This allows you to look at financial documents to see if something illegal is happening within a person’s or a business’s finances. A forensic accountant can help catch criminals and bring them to justice.
- Why Major in Accounting?
- Accountants and Auditors
- Forensic Accounting
- Finance vs. Accounting: Which Degree Is Right for You?
- Six Benefits of Becoming an Accountant
Accounting Activities and Games
Whether you want to be an accountant or not, you still need a solid understanding of money management, accounting, and financial principles. One of the best ways to learn and to practice what you’ve learned is by playing online games. They can take something fun and turn it into a great learning experience, ensuring that these important concepts stick with you for years and years to come.
- Jump$tart’s Reality Check
- Yesterday’s Tomorrow: Your Financial Adventure
- Cash Calculator: Four Banks for Your Bucks!
- Basketball Game: Chart of Accounts
- The Lemonade Stand Game
If you still want to know more about accounting and money management, there are lots of other resources available to you. Remember that you can start practicing now with money that you receive from an allowance or even from loved ones as a gift. And getting a head start on this learning can only benefit you as you look to head to college, move out, and become an adult with your very own paycheck.
- Debit Cards Versus Credit Cards
- How to Raise a Money-Smart Child: A Parent’s Guide (PDF)
- Make Better Money Decisions
- Benefits of Financial Literacy for Kids
- Hands on Banking Teen Version: Instructor Guide (PDF)
- Personal Finance Lesson Plan
- World of Cents
- Explaining Taxes to Kids Lesson Plan
- Kids and Money: Share Your Knowledge (PDF)
- Money Management for Teens: Five Ways to Cut Spending and Still Get to Do and Buy Cool Things
- Teens and Money
- Online Master’s Degree in Accounting