January 19, 2023 7 min read
Irrespective of whether we like it or not, regardless of the fact that speaking about finances is still taboo in some cultures – money is what makes the world go round.
Money isn’t an inherently good or bad thing. But one undeniable fact is that money has immense power. Those who leverage the power of money succeed, and those who succumb to the vices of money end up in trouble.
Understanding budgeting, finance, and how money works is a highly valuable skill for teenagers to learn, to help them prepare for the future
Yet, this all-important topic is rarely included in academic curriculums. As a teenager, it’s essential to understand basic financial terminologies and concepts. This boosts your financial awareness and can help you make better monetary decisions.
For most things in life, the earlier you start the better. Personal finance is no different. The earlier you start saving up money, the better off you’ll be in your adult life.
But teenage years can be particularly challenging because you start becoming influenced by all that you see around you, and desire things that require some amount of money. Often this is an amount which you do not possess.
Here’s how you can make money, save money, and grow money as a teenager.
When you start saving money, you not only become safer financially, but also experience a whole range of benefits which aren’t always obvious to you when you are young.
Saving money helps you make conscious consumption choices and makes you think before you spend your money. This increases your mindfulness and self-awareness as a person. You learn about what truly matters to you and what makes you feel good.
Setting a monthly goal of savings and hitting it can also help you feel accomplished. This enables you to gamify the task of saving money and feel like a winner when you do so!
The biggest benefit however is the fact that saving money opens up a whole new world for you.
You can save your pocket money or earnings to buy something substantial that otherwise would not have been possible. Being able to fund your own expenses and passions as a teenager is a liberating and proud feeling for every student.
Lastly, the habit of saving money when possible also imbibes the important traits of responsibility and accountability in you. These are high-level qualities to have that will help you succeed in the long run.
In an age of consumerism, the ability to resist the temptations is increasingly becoming an art, one which not many people are able to do.
As teenagers, many of our decisions are directly or indirectly influenced by what our friends are doing.
We must learn to control the urge and not get swayed by ever-changing trends, the lure of FOMO, and the desire to fit in. Even if your friends try to convince you to buy the latest product or gadget just because it is a part of popular culture, if you want to be financially well-off as an adult, you should learn to resist the pressure and avoid making impulsive decisions.
Being too impressionable leads many people to financial ruin. Be mindful about money instead.
Since the education system doesn’t do a great job in educating us about personal finances, the onus is then on us to be genuinely curious and interested to learn about this essential topic.
Have you ever been confused between credit and debit? Or how interest is calculated and applied?
If your answer is yes, do not worry. You’re not alone. Many teenagers are still unaware of the basic terminologies used in the banking or financial world. The willingness to learn about them is a good start.
This will make you better equipped to understand your expenditures and help you manage your savings, investments, and overall finances.
The Internet is a boon for us today, there is so much reliable, high-quality information on free platforms like YouTube itself. Utilise this to learn about personal finances to put yourself ahead of the traditional learning curve.
As a teenager, if you invest some time and energy into learning about investing, your intellect and understanding of the world can skyrocket.
Have you ever noticed the news showing the rising or falling share prices of the products that we use in our everyday life?
That is the stock market, a place where anyone can invest their money once they reach the legally permissible age to do so.
Use the numerous free resources on the internet to learn how stocks work and the requirements and procedures to purchase and sell stocks to make a profit.
There is a plethora of educational information out on the Internet today, everything from Netflix explainers to Personal Finance content on social media today is freely available at the tip of our fingers.
All you have to do is put in the work to learn and let your curiosity lead the way
Learning about this will give you a head start when you reach the legal age of making these transactions yourself. Until then sharpen your knowledge about these things so you’re ready to take full advantage when your time comes.
Everyone from Apple to Spotify to Youtube has exclusive discounts and perks for students. It’s a pity that most students simply don’t know about these things and are hence unable to benefit.
Most teenagers are always short on money as they haven’t started earning yet, so it’s important to make the most out of these discounts that are provided primarily for students.
Several companies provide software for free or at discounted prices to students. Many restaurant chains or clothing brands have special student discounts if you provide a valid student ID.
Keeping a lookout for these discounts and using them whenever you want to make a purchase will help you save tremendous amounts of money when done in the long run over months and years.
There are hundreds of millions of people today living paycheck to paycheck and even in debt because they make the catastrophic mistake of not budgeting.
It’s hard to control your spending when you don’t even know how much you’re spending!
Saving is important. But to save, one must first formulate a budget based on income and expenditure. Sticking to a budget could be made more accessible by opening a savings account in a bank.
Learning how to spend within a limit without having to borrow will help you stay out of liabilities and have a better life later on when you have more bills to pay and responsibilities on your shoulder.
Decide a budget beforehand and plan your expenses around it, this will prevent you from asking for money from your parents repeatedly and help you become more independent.
Focusing on finance as a teenager does not mean that you need to give up on all the fun and have to save every penny.
Penny pinching is never a good thing when done excessively. This article instead, is just to get you to think about money more mindfully.
Mindfulness about money means to spend prudently and responsibly, whilst also still going out for movies, trips, or buying your favourite apparel.
Money management is not a hindrance in living your best life but its enabler.
Financial literacy is an essential subject that nobody can afford to ignore, especially not in testing times such as the pandemic and the recession.
We hope this article can spur you into action and kickstart your personal finance journey, good luck!
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