Top 10 Money Tips For Teens
May 21, 2021
Most financial challenges are created by financial habits that don’t support your financial goals. The younger you are, the easier it is to develop new habits. Teens are at a great age to learn effective personal finance habits and begin creating a bright financial future.
01) Time is on your side.
There is an easy way to become very wealthy. Start early. We talk about this in detail in our book, The 23 Keys to Protect, Secure, and Grow Your Family's Financial Future. In Key #15 Start saving and investing now: do not wait until you think you can afford it there's an amazing chart in there that shows you how to have millions more when you retire simply by starting early. Open a Roth IRA with your first earned dollars and save for the first 8 to ten years of your young adult life, and you could be set for retirement.
02) Develop a saving habit.
Whether you receive a paycheck, allowance, birthday money, or money from mom to go see a movie, make a habit of saving part of it. This single habit can allow you to avoid most financial challenges in the future.
03) Understand the basic financial terms.
Understand the meaning of words like debt, credit, 401(k), interest, APR, debit card, and so on.
04) If you’re not sure about making a purchase, don’t.
Houses are full of silly purchases that left the purchaser shaking his head. Avoid making unnecessary purchases.
05) Debt is borrowing from your future.
Using a credit card is pledging to give money you’ll earn in the future to pay for that item, plus interest. There’s nothing worse than having to make payments for something that you don’t even use anymore.
06) Protect your credit.
A high credit score can reduce the amount of interest paid on credit cards, car loans, and home loans. A low credit score can limit your ability to find a good job.
07) Start budgeting today.
Decide beforehand how your money will be spent. Set aside at least 15% for savings.
08) Take a personal finance course.
While high schools don’t require a course in personal finance, many do offer a course. Build a solid foundation for your financial future.
09) Short-term denial leads to long-term gain.
Financial freedom is the result of denying yourself pleasure in the present to ensure a bright future. Any money spent today costs you even more in the future. So, spend wisely.
10) Find inexpensive ways to entertain yourself.
Consider yourself blessed if you can enjoy the library, park, or renting a movie.
Create your money habits with the future in mind and NOT stealing from it. Only purchase what you've earned. Take REAL responsibility for your finances and you'll watch your nest egg grow!
Michelle R Russell
© The Prosperity Process, LLC
for BNB-Boss
P.S. For these special Spring/Summer articles, BNB-Boss is focusing on teaching financial literacy to kids. We want you to have the tools you need to start them at any age: children, pre-teens, teenagers, or young adults. Several of our articles are geared this Spring and Summer towards Kids and Money. Get your FREE Worksheet, “Set Your Teenager Up For Success by Teaching Financial Literacy,” now by clicking here.