A Guide to Financial Independence for Teens

Beware of little expenses. A small leak will sink a great ship.” –  Benjamin Franklin

Finances are usually one of the trickiest aspects of people’s lives and also the most important. It is an element that shapes your future while keeping your budget in check. The section of society that needs to build up its knowledge on this topic the most is teenagers. They are on the cusp of adulthood and are also the most confused about it. Saving money along with utilizing it wisely is an extremely necessary skill to have and implement from early on in life. The teenagers today are growing up in an environment where expenditures in employment, education and housing are increasing immensely. This speaks volumes about how they should know to save and create a budget and it is something that needs to be learnt from home. Financial independence no matter how sweet comes with the lesson that it is all about having a systematic approach. Here’s an overview of how one can make it an easier task.

Early Implementation of Finances

According to a survey, 25 % of teens state the need for financial help from parents to support them until they turn 25. This number describes how important it is to bring about some awareness about having knowledge of finances. In order to be mindful about expenses, it is essential that youngsters keep some money aside for any long term goal or purchase. Implementing this skill earlier on in life will help in providing some support for the future. The best way to do this would be to set aside small amounts of money and save it for future requirements. Parents are the best examples of how one can manage finances and learning from them is the best way to go. Habit is a power that is extremely necessary and by making early savings a habit one won’t need to worry about any money issues cropping up in life. The fact that there are fewer expenses in the teens makes it easier to save atleast half of the money received, be it a gift, pocket money or salary.

Financial Goals – Setting Up for a Convenient Future

Budgeting is a process that majority of the people aren’t fond of. But it is extremely necessary for long term goals. One of the easiest and fun ways to build up a financial goal is to have an aim. It can be any particular purchase that has been pending for a long time or just a gift for someone else. This object should be held as a target that needs saving up for. This will push any person towards setting aside a certain amount and makes it interesting. The person will then look forward to following this process every month knowing that it will help in receiving rewards. It is indeed a smart skill to possess and builds up a certain level of discipline as well. The teens today can also opt to work small jobs and slowly make their way towards learning to save while earning.  

Tracking Expenditures with a Savings Account

Expenditures as a teen, though not too many still do exist and the amount received by them is also pretty small. Many of them receive this amount in the form of cash which is usually very hard to keep track of. A savings account in a trusted bank can help in eliminating this issue as the entire amount received is stashed away and is only accessible when one uses a debit card. This also requires a lot of research to know which bank is best suited to create an account in as it will come of use later on in life. Apart from being safe, having an account can also help keep track of a person’s expenses as the amounts are constantly displayed upon withdrawal. Today, individuals are also able to use mobile applications to keep track of the money spent from the accounts. This separation of money makes planning expenses easier and more convenient.

The world of expenses maybe an tricky one, but by knowing the way around it can help in finding financial stability early on in life. This will ensure an easier and an aware transition into adulthood.

 

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