Teens want the green. Yes, money matters to teens. Having your own money is one of the first steps towards obtaining your independence. Whether they do chores for an allowance, get a job, babysit, create their own business, or get paid for good grades, most teens come to a point where money needs to be earned in order to satisfy their desire for a life with at least some autonomy. Experts agree that the earlier you learn how to manage your own money and save, the more your future self will thank you!
Here are some tips to consider:
SAVE: Of course, the minute you start making money it’s very tempting to spend it. Experts say if you make saving a habit right from the beginning it can become a lifelong benefit. Those who don’t start off saving, often struggle to do so later, so when you start making money, remember, even though it may not seem like a lot at first, money you put away and sort of forget about, builds up over time and can accumulate into quite a stash if you are disciplined.
Solange Bolger, senior, said, “I feel like since teens do not have to budget their money as much and still have parents providing for them, they forget to track their spending or save at all. This is especially evident when parents have saved money for their children to go to college and/or given them financial security their entire lives.”
TRACK YOUR SPENDING: It’s amazing how quickly money you spent time and effort to earn can disappear. One pair of good sports shoes, a few snacks , a couple of outings, a tank of gas or just your usual coffee, and poof, you’re broke again. Tracking what you spend is important. It all adds up, and if you know where it is going, you can make adjustments. Cash is reported as being the toughest to monitor. Many jobs like babysitting, mowing lawns or walking dogs are paid in cash. Getting cash is great. It is instant gratification for your hard work, but beware, it goes fast if you don’t have a plan!
Thomas Anderson, senior, said, “Teens are very open to spending money and often times do not have the time or dedication to keeping track of the purchases they make. I myself even forget to keep track of all my purchases and the money I am spending.”
GET EDUCATED: Learning about money, how to make it, save it, and make more out of it is very important. Most teens don’t take it very seriously. So why are we going to school? Why do many of us want to go to college? So we can get jobs and ultimately be independent right? Part of all that is learning how to manage our finances, so why not start now and be ahead of the rest? Experts point to a lot resources on the internet with excellent ideas, as well as budgeting tools, like “Mint”, and “You Need A Budget” that can help.
UNDERSTAND YOUR PAYCHECK: If your making a paycheck, you need to understand the difference between your gross pay, the amount you actually earn, and your, net pay, the amount you actually get to keep after the government gets their share. That can be quite a shock if you are not prepared. It will probably also lead to other questions that you can ask your employer or parents about. In the end you will be more educated about how money works, and better prepared to make good decisions.
ESTABLISH CREDIT: Getting a credit card when you’re 18 years old, just leaving home for the first time and have zero money experience is probably not the best idea. Work with your parents and get a credit or debit card to practice what using these methods of payment in entails. In the process, if you choose to get a credit card you can actually start building your credit history which can assist you later with getting loans and other benefits.
Anton Dahm, junior, said, “Overall, teenagers don’t have the need for large purchases that a credit card would necessitate. Until they have a general understanding of personal finance, teenagers should be given very little assets unless it’s their own money.”
USE YOUR STUDENT ID: You’d be surprised how many discounts are available out there for students. All you have to do is ask and show your ID, so keep it with you!
DON’ T GET CAUGHT UP IN FOMO: Many teens deal with the fear of missing out. You might think everyone else is having way more fun than you. You might feel pressured to spend money you really can’t afford to spend, on stuff you really don’t need. Resist that. It is not worth it and save your receipts. At least that way you might be able to return things after a weak moment of spending.
START NOW: If you ask older person if they have any regrets with regards to their finances, many of them will respond that they wish they had started managing and saving their money sooner.
Making some money is obviously the first step, but research suggests even more importantly, being educated on money matters, including how student loans work and how and scholarships opportunities can help, as well as as simply being disciplined, really seems to be what makes the difference between those who are prepared for their financial futures, and those who can never quite catch up.
