Friday, 5 June 2015

TOP FIVE(5) MONEY HANDLING TIPS FOR TEENS




Financial literacy can be hard to achieve, and saving money isn’t easy when there’s a Friday night movie that all your friends are attending. Here’s the thing: you don’t have to say no to going out with your friends to be financially responsible; instead, begin establishing good money managing skills now. If you want to be prepared for fiscal matters beyond high school, you must start practicing good financial habits as a teen.

  • Pay Yourself First! The most important financial habit you can practice is to save money. By paying yourself first and saving a set amount of money each week (say 20% of your allowance or paycheck) you’ll have the money to afford something more expensive one day, like a gaming system or a car.
  • Open a student account. The best place to store and save your money is in a bank account. Check your local banks and credit unions to identify your account options. Most places offer a free account for students up until you turn 25.
  • Compare bank rates before opening an account. Before you choose your account, make sure you know the current savings rates. These rates can be found online, or you can go to local banks to inquire about their current rate. This step is crucial, as it could make a huge difference in the yearly yield of your savings account.
  • Avoid using a credit card. When you turn 18, you become prime prospect for credit card companies. As a new user, you have a pristine credit score—ready to be destroyed with one late payment or wrong move. Charging with a credit card can be dangerous because it will encourage you to spend outside of your means, which can quickly ruin your credit score and send you into debt. Be a smart consumer and avoid credit cards until you can confidently stick to a predetermined budget.
  • Become familiar with the elements of a check. Once you turn 18 and graduate, you gain the title of “adult”. You also gain the responsibilities of an adult, and these include paying for rent, insurance, and any other bills each month. Prepare for that transition Now.

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