Most teenagers are just happy to have money to spend but this is a prime time for you to lay a foundation for a solid financial future. I know it is not as exciting as going to the movies every Friday night or buying that new hot item at the store, but when you are older you will thank me. I wish I had listened…
- Get a Job – Learn the value of earning your own money. Just a part time job for a few hours while you go to school. The experience is worth more than the paycheck.
- Avoid Using Credit Cards – Credit cards are good for establishing your credit history, but avoid using them too much. This will allow you to easily fall into debt. That is not a good start to financial independence.
- Start Saving – Start with small goals like saving up for something you really want. Do not buy it right when you have the money, save double and keep the rest in the bank. You can never start saving too early and unplanned expenses always seem to pop up.
- Open an IRA – Planning for retirement can never start too early. Even before, you start your career.
- Start Budgeting – Learning how to spend your money wisely is perhaps the best thing you can begin to learn. Planning how you are going to spend it and meeting those goals will teach you management skills that apply to other parts of your life including work.
Using just one of these tips will be helpful in your financial future, using them all would impress your Economics teacher. I learned the hard way, but thankfully have corrected my ways. Money is not the path to happiness but it does make it a lot easier. Let me know how you manage your money in the comments section below.