If you’re a teen and you just got your first job, or you’re trying to save up to pay for an expensive goal like college, a car, or even just a fun trip with friends, you’ll want to learn some lessons about being smart with your money. Earning money can be fulfilling, valuable, and enjoyable. It is important and worthwhile for you to have a job so you can practice earning, spending, and saving money in a smart way. Here are a couple of things to keep in mind as you’re learning about managing your own money.
Practice Intentionality
One of the first things to learn is to practice intentionality when saving and spending. When your first paycheck arrives, it can be tempting to go spend it all in one afternoon, especially if you’ve been eyeing a particular product that you want. However, it is important to slow down and to be more intentional with your spending choices. Remember, if you put some of your paycheck into a savings account, that money will be able to grow some interest, and then you’ll have money saved away for emergencies or for more expensive purchases. So, when you’re deciding what to do with your paycheck, remember to put some in your savings, and then be intentional and careful about buying what you really want or need.
Balance the Present and the Future
Another financial temptation when spending your paycheck is to want to fulfill all of your present desires first. Maybe you’re wanting to keep up with the trends at school or to have more expensive technology. Especially when your peers and friends can make trends seem like they’re not just popular, but necessary to have a happy life, it can be difficult to resist buying and buying and buying. However, you need to pause and think about your present needs versus your future needs. Maybe today you’re really tempted to spend a few hundred dollars on a cute summer wardrobe, but what if you’d also like to save up for a car or a new computer in the next couple of months? That is why it is important to balance your present and future wants and needs. It may require some sacrifice to put some of your money in savings every month, but you’ll see that it will pay off when you’re able to make important purchases in the future. Sacrifice can be a powerful wealth-building tool for teens just starting out saving.
Learn to Invest
One option that many teens aren’t aware of is investing. Investing is a great way to make money without doing anything. If you put aside some of your savings to invest in certain companies or other investment options, you’ll likely be able to see your investment amount grow over the years. Some companies in the stock market even pay their investors dividends each year if their business is doing really well, which is a great way to make money on the side.
Now that you’ve learned about some of the financial choices that you can make, go try it out! Remember to be intentional in your spending and saving, try to balance your present and future needs, and look into investing your money. Each of these ideas will help you to better manage your money and fulfill your present and future financial needs.
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