Financial Management 101 For Teens

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Do you want to have a life where you can get everything you want? Do you believe that all it needs to effect a change in your life is to manifest your desires to the universe? Are you interested in becoming a financially independent teenager? Is it your goal to become an adult who knows how to handle finances? If you answered yes to all these inquiries, then this article is definitely for you. 

Our team of experts has come up with a guide to help teenagers like you to learn financial management. First of all, you have to understand that the choice to learn something new starts from within. Before reading the rest of this write-up, be sure that you are committed to helping yourself to become wise in taking care of your money. Only by doing this can you appreciate all the tips and tricks listed below. 

Have A Plan 

The initial step to take is for you to create or make a plan. As much as possible, try to come up with realizable objectives that you want to achieve in the future. It is highly recommended to set a deadline for materializing these goals so that you will become more inspired in saving some cash. An excellent example of a goal is to raise money for a summer trip. A simple objective like this can already make a big difference in the way you view money. 

“If you have a young person who is a spender, have them practice saving some of what money comes their way,” said PhD psychologist Carl E. Pickhardt. “This will literally and psychologically mean “money in the bank” as he or she learns important self-management — to delay gratification and even set and work for future goal.”

Understand Debts 

One of the common things that can hurt people financially is having too many debts or liabilities. These items earn interests, which is why the amount will continue to grow as long as they remain unpaid. If you do not want to be like these individuals, then be sure to understand how debts work. As much as possible, avoid borrowing or loaning money from other people especially if the proceeds for the loan will go to shopping or eating. 

Learn How To Earn 

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As a teenager, you probably get a weekly or monthly allowance for your friends. As such, if such is the case, then consider yourself lucky since you no longer need to work hard just to get money to buy the stuff you want. However, if the amount that you are getting is not enough, then do not hesitate to find other avenues wherein you can earn more.  

Just make sure that the activities you will undertake are not illegal or prohibited by law. Earning your own money can give you a sense of fulfillment. It will make you start to value money even more.  

“Focus on earning rather than spending but don’t sell out for money. Find an after-school or summer job that will help prepare you for career and life,” said Marty Nemko, PhD.

Talk To Parents  

Whenever you have questions about managing your finances, do not be afraid to talk to your parents about it. Keep in mind that talking to an adult can help a lot in solving your problems or in clearing specific issues about financial management. The only way to learn how to be good at this aspect is to get some sound advice from your mother or father. Listen to their personal stories of success. Get lessons from it and apply these to your daily experience.  

“Our first experiences with money are how it is managed in our own home,” said Sherry Coleman, MA, LPC-S. “Educating our children about finances is one of the the greatest protections we can offer as parents.”

Start managing your finances smartly while you are still in your teenage years. Master how it works until you become an adult. By then, you have already become an expert in financial management