Money is a global commodity; its value and usefulness cannot be overemphasized. Teenagers need and spend money on various things, ranging from clothes, stationery, snacks, game and more.
Does a teen need to save money or draw a budget for their needs? Absolutely!
Teenage saving might be difficult especially when you have friends that do not care about finances but it’s not impossible to make a deliberate decision to begin saving from now.
A lot of things influences a teenager’s decision in spending. Some of which include pressure from peers, the feeling of being among and the sense of belonging that come when you do what your peers are doing.
Management of funds does not totally avoid you pleasure. It just helps to minimize wastage.
Knowing how to manage a huge sum of money starts with saving from the little you have now. Mismanagement of a large fund will be inevitable when an individual cannot handle a little amount.Tweet
Many teenagers have not learnt the trick to differentiate between their needs and wants. Usually, we just opt for anything we feel like having without considering the necessity of such a thing.
How can a teenager set finance priority rightly?
1. You need to know that there is a difference between your needs and your wants
Needs are pressing issues. They are things that are of utmost necessity. While wants are things that are also necessary but can wait. They can wait for a while so you can attend to the needs. You have to be able to draw the line between these two. Spend smartly.
2. You need to have a budget according to the urgency or necessity of your needs
Having a budget will help you avoid the mistake of spending on your wants rather than your needs. Have a plan on what to spend, how to spend it, when to spend it and what to save.
3. You should cut your coat according to your size
Don’t overspend if you can’t avoid it. Your budget should be in line with what you can afford. Don’t cross the line.
4. Keep track of your spending
5. Cultivate a saving habit and be deliberate about it
Consistency is key. Have a savings account.
Getting serious about money is not a function of age, it is an attitude that can and should be cultivated. Remember, responsible people are those who are prepared for responsibilities. Saving prepares you for responsibilities. Be prepared.
What are you doing to set your priorities right as regards your finances?