Top 10 Saving Tips for Teens
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.
1. Time
There is an easy way to become very wealthy. Money that is invested wisely will double approximately every seven years.
2. Develop a saving habit
Whether you receive wages from a job, an allowance, birthday money or even money from parents, make a habit of saving part of it. This single habit can allow you to avoid most financial challenges in the future.
3. Understand basic financial terms
Understand the meaning of words like debt, credit, interest, APR, debit card and so on.
4. Shopping
Houses are full of silly purchases that left the purchaser shaking their head. Avoid making unnecessary purchases. If you are unsure about making a purchase, don’t.
5. 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 is nothing worse than having to make payments for something that you no longer use.
6. 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 gain credit.
7. Starting Budgeting as soon as possible
Decide beforehand how your money will be spent. Set aside at least 15% for savings.
8. Take a personal finance course
Most schools in the UK don’t teach personal finance, however, you can find personal finance courses online. The Open University run a two-hour course in conjunction with MoneySavingExpert. Build a solid foundation for your financial future.
9. 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.
Hobbies don’t have to be expensive. Consider yourself blessed if you can enjoy the park, library or watching a movie on Netflix with friends.
