Money is likely to be the biggest struggle in your teens. With a lot of dreams and desires top of mind, it becomes pretty tough to manage your finances when you’re in school and only have part time work, if any. Needless to say, you are yet to establish an financial identity of your own..
Many teenagers opt for personal savings. However, that does not often help you save money in the long run. However, we have some tips that can help you manage your finances so you do not run out of money while chasing your dreams:
1. Start earning
The best thing you could do in order to save is to start earning some type of steady income. As a result, you will have your financial stability that you can depend upon monthly as well as a budget you can stick to in order to start paying down student loans or saving for a car.
2. Curb your expenses
Saving begins when you spend less. Therefore, try to cut down your unnecessary expenditures to a minimum. For instance, eating out less will be a quick way to save money.
3. Maintain a budget
This has helped a number of individuals save, not just teenagers. Creating a budget is sound advice for all of us. Maintaining a monthly or a weekly budget with respect to your income will help your spending in check, and improve your personal savings account and credit score.
4. Practice saving
When you aim for bigger savings, you have to start small. Therefore, you have to begin with the habit of saving first. Make a promise to save a set amount every month. It is advisable that you fix the amount so you aren’t tempted to overspend.
5. Open a separate bank account
Yet another viable option is to open a separate bank account. There you can deposit your monthly or weekly education savings in this account and not touch the money. This will also help you in curbing your expenses and to save a set amount of money for a larger goal.
6. Monitor shopping
Many of us are guilty of impulse shopping. However, for teens one shopping splurge can leave you almost bankrupt. You are likely to spend all of your savings at once. Therefore, plan your shopping in a clear list before you go so you don’t purchase beyond what you need.