If you are still in your teens then personal money management would be the last thing on your mind. You might as well be thinking that your entire life ahead will be spent on learning about the nitty-gritty of money management. So, there is actually no need of immersing yourself in all the credit and debit calculation right in your teens. However, know for a fact that the smartest of money managers out there start learning the ropes of financial management from their late teens.
It just gives you more time to learn. The mistakes which you end up committing in your teens won’t hurt as much as they do later in life. Today, the youngsters in their late teens are introduced to the world of adult finance by means of credit cards and auto insurance. So there is actually no reason why you shouldn’t start acquainting yourself about the ways of proper finance management in your teens.
Tips to manage your money properly in your teens
It is very important to ensure that you are actually investing proper time to learn about the smart ways of dealing with money. If teenage is all about school/college, tuitions, partying and studying it is also about handling credit cards—it is also about documenting your saving goals and working out a budget to reach those goals. Go through these effective tips to manage your money properly during your teens.
Prepare a budget
We know that it is essential to dish out financial advice to people as per their individual situations. A budget seems to top the list of financial dos for people of every age and financial background. You simply cannot embark on your quest for a hassle-free financial future if you are not budgeting. You can break your budget in the following fashion
- Your pocket money/earning
Once you have a clear picture of these three aspects, you will be able to make adjustments accordingly and prepare a complete budget. If you think that you are not saving enough to meet your short-term financial plans then you might consider looking ways for earning more. If you are only surviving on your pocket money then you should consider exploring a few ways of earning more—may be indulge in freelance blogging, giving tuitions or for that matter, doing anything based on your special skill or talent to earn money.
Besides increasing your earning, you can consider having a glance through your expenses. It is a bit difficult to cut down on the necessary expenses including your education bills, rent, grocery bills and insurance among others. Perhaps if you rent house in Coimbatore which costs you less than your present rented house you can definitely shift to that place after ensuring that you are not shelling out more transport costs in the process.
It will be rather easier to cut down on your entertainment costs. How about bringing down your number of night-outs from thrice a month to once a month?
Make sure you are setting practical and achievable goals for yourself:
Instead of planning a Hawaii vacation in three years, make sure you are trying to pay off your student loans first. It is important to prioritize your financial goals properly. It might stand something like this:
- Save substantial amount of money to build an emergency fund
- Paying off all debts
- Getting a house of your own
- Purchasing a bigger car
Look out for financial rewards
Make sure you are educating yourself about ways in which credit card rewards work. Plus, there are a few insurance carriers who offer special discounts on car insurance to students who have attained good grades in class on a consistent basis. It is believed that these students are able to translate their classroom attentiveness to the road- while driving as well. So they are rewarded with cheaper insurance costs. Learn more about this particular aspect as well.