Making money as a teenager is really fantastic. It’s such a liberating experience to have money as a young person (whether you’re working for it, or you are given it by your parents). Living as a teenager can also be expensive; and if you are not disciplined and controlled, no matter how little or how much you make, problems may arise and you would be left with nothing in the end.
One interesting thing about being a teenager is that you do not have too many commitments, so this is the best time to learn strategies to boost your finances. It’s not too early to start your journey to financial stability, though the road can be rough. Regardless of your level of income, spending your money intelligently and wisely is one of the crucial ways to gain financial stability. Below are some tips to help you manage your money smartly as a teenager and improve your Finances.
Creating a budget doesn’t necessarily mean you have to forfeit all the fun stuff, it just means you have to set priorities and be disciplined enough to stick to your plan.
- Know Your Income & Create A Spending Plan: You may not like to hear the word, ‘budget’, but it’s really important if you want to spend wisely. The most important parts of budgeting are knowing your income, deciding what matters most to you, and ensuring you do not budget or spend more than you earn or have available. Creating a budget doesn’t necessarily mean you have to forfeit all the fun stuff, it just means you have to set priorities and be disciplined enough to stick to your plan. If with time, you realize that your budget is not working for you, you can always change it to fit your current needs.
- Save/Invest first: Whenever you have extra money after making your budget, don’t think of something else you can spend money on, you should save and invest first. You are not too young to start saving for your future.
- Set Goals For Yourself: Setting financial goals is a fantastic way to spur yourself on to follow your spending plan. This will help you develop self-control and prioritize your necessities. Regardless of what your goals are, if you can stick to your spending plan and maintain sound financial practices, you’ll achieve them quickly. You can set goals like buying a laptop or buying an asset.
- Always Look for Alternatives: You don’t need to spend a lot of money to be entertained. For instance, instead of going to the movies with your friends, consider asking them to come to your house, eat popcorn and watch a movie on Netflix; or instead of eating lunch out at entries, try to pack lunch from home.
You are not too young to start saving for your future.
I have more to tell you but I will put them in another blogpost as this is one is already quite lengthy and I would not like you to skip over any of this great advice. In the meantime, follow the tips above consistently and let me know in the comments section how it goes for you.