4 Financial Tips For Teenagers
As a teenager, saving up money and handling your finances can be challenging, especially if you’re still wholly dependent on your parents when it comes to money matters. However, just because you’re young doesn’t mean you’re put at a disadvantage. As a matter of fact, the earlier you start smart financial habits, the more thankful your future self will be to you.
There are three ways teenagers can get money – ask from their parents, gift from a relative, or earn it on their own through minor sidelines. The truth is that there are numerous ways to make money as a teen. Just because you’re young doesn’t mean you don’t have any access to small job opportunities. Some of these include babysitting, pet sitting, tutoring, selling your old stuff, house sitting, and more. As long as you’re motivated and hardworking enough to take on small sidelines, you can possibly earn enough money to buy your own desires.
However, in spite of earning small amounts on your own, there are certain money habits that you need to know for you to be responsible when it comes to handling finances. It’s the parents’ responsibility to teach their kids and teenagers about good money habits.
Here are four financial tips for teenagers that could help them spend and save their money wisely.
- Use Time To Your Advantage
Perhaps in your young age right now, it’s understandable if you’re not earning much from babysitting for your neighbor once a week. However, the amount you earn doesn’t really matter. What matters the most is time and how you make use of it wisely. For instance, at the end of juggling two summer jobs, you were able to earn $500. You can save that amount in different ways, including:
- Opening a savings account in which you get to receive high-interest rate
- Give a part of your earnings to your parents to be used in investing stocks, business, or real estate
- Save your money and, soon enough, invest it on your own
Investing your earnings at the earliest time possible will leave you a large amount of gain after 30-50 years. Money can grow very fast, especially when you start early. So, use that time and let your money grow with you.
- Begin Your Money Saving Habit Now
Suppose you’ve followed the first tip which is to save your money and invest it. But, saving your money doesn’t end there. It needs to be done repeatedly as a habit. If you compare it to brushing your teeth, perhaps you started brushing your own teeth when you were six, and now you do it every day out of habit. The same goes for saving your money. Make it a habit to save, at least, 40 to 60% of the money you get from your sideline jobs, allowance, or money gifts you receive from your grandparents. Sooner or later, all the savings will add up and become a large amount of money.
- Keep Track Of Your Expenses
It’s vital that you practice keeping track of your expenses so that you’ll have control over how much money you have left. If there’s one thing that’s hardest to track, it’s cash. Knowing that you have a good amount of money in your pocket or wallet can be very tempting until you only have a few left. Thus, it’s recommended that you open your own savings account and have all your stash of cash deposited. This way, your tendency to spend all your earnings will be controlled.
In case you haven’t opened your own savings account yet, separate your savings money from the expense money. Mixing them all together will make it hard to control your spending habits.
- Take Advantage Of Your Student ID
Are you aware that your Student ID is more than just a card with your grinning face on it? You can use your Student ID to ask for discounts on certain stores such as groceries, restaurants, movie tickets, and bus and train travels. You can even get a 10% discount from some famous retailers around, such as Amazon Prime, Urban Outfitters Levis, Apple, and more.
Making use of all these discounts will help you save money a lot easier. If you’re not sure which stores accept student discounts, don’t hesitate to ask the store attendants everywhere you go. Not all businesses are openly advertising student discounts, but they’ll offer it when you ask and present your Student ID.
There’s no such thing as too early when it comes to starting good money habits. Saving money may be challenging at first for a teenager like you, but following these tips mentioned will make it easier to earn your money and navigate your finances. Soon enough, as your savings account grows, you’ll have enough funds to pay for your expenses and other future plans such as college, investments, or your own business. So, start saving money now and secure your future.