Teenage Personal Finance

mportance of Teenage Personal Finance

So you have your first after school job! How exciting! But before you start reveling in this newfound financial freedom, you need to start thinking about teenage personal finance. Even teens need to take advantage of personal finance tips, so they do not waste all of the money they are earning!

Importance of Learning Teen about Personal Finance

You are going to enjoy having money of your own! Now you do not always have to beg money from your parents when you want to go out! But chances are you have no idea about saving. You have not been taught important personal finance savings tips, and you do not realize that you should start saving money, even now. Learning how to manage your personal finances is one of the most important things you can learn. Your college education and retirement may seem like they are light years away, but you need to start to organize and manage personal finances now to plan for these huge events in your life.

Problems Teens Face With Their Personal Finances

There are some problems you are going to face when it comes to teenage personal finance planning. Let's face it-there are so many things out there to spend your hard earned money on! It feels great to have your own money to spend however you want, and you have plenty of ideas how to earn it.

You, as a teenager, are impulsive. This means that you do things on the spur of the moment without thinking about them. Spontaneity is part of what makes being a teen so much fun! But when it comes to your money decisions, this is a bad thing, because you waste it very quickly. Perhaps you have already realized that as soon as the money hits your bank account, it is gone!

Do you want to buy a car? Do you have a particular model in mind? If so, you need some money to use as a down payment for that car! If you do not plan the use of your money, that car is a dream you will never achieve.

In order to be successful with your money, you need to plan. You need to stop spending every cent the moment you get it, so that you can make larger purchases in the future. This is not easy to do! But with a plan, you can start saving money, even now!