Monday, 17 September 2018

Young Money: A Teenagers’ Guide To Managing Their Finances

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Whether you are out there earning your own money, managing the allowance you are given by a family member or saving for the future, money management can be a tough issue when you are a teenager, and it's one that can affect many of us. Luckily, it's possible to take actions now that can have a positive effect on your finances throughout your life. I have been taking them into consideration during the last few months, because I want to ensure that I can feel comfortable without having to worry about what's to come. If you're interested in becoming more savvy when it comes to those pennies, just keep reading this post...

Get Educated
The first thing on this list of strategies to use to better manage your money as a teenager is to get educated. Now, I know you already have enough on your plate with school, and exams and all that, but money management is a skill that will benefit you for the rest of your life.

Sadly though, it's not always a subject that is emphasised in school, and so that means it's often left up to the individual to get up to speed. Luckily, you can get some help with this online, and once you know the basics, it should help you plan and control your finances that bit better. This is something that can then put you in a great starting position as you strike out on your own in the world and are in control of all of your incomings and outgoings.

Have An Emergency Plan

Next, when it comes to money management having a worst-case scenario plan is essential.This may look a little different to the plan of someone that's living outside of the family home or in full-time higher education, but the principles involved are the same.

Firstly, wherever possible, don't spend all the money you have in one go. Always try and keep some back for those unexpected costs that life is bound to throw up occasionally.

Secondly, be sure that you know what you would do if you find yourself in a situation where you desperately need money for a vital cost like a medical treatment or car repairs but don't have the full amount.

It could be something as simple as checking your parents would be ok with you asking them for a loan, extending your overdraft if your bank will allow it, or even applying for something like these Buddy Loans that can be paid off in small, and easy to manage instalments. Just be sure you have a go-to plan for a financial crisis, even if you never need to use it.

Save While You're Young

Lastly, you have probably heard that if you can save and invest while you're young, you stand a much better chance of being financially well off in later life.

Yes, all that can seem like a very long way away and not too relevant to what is happening right now. However, it's vital to remember that the way savings and investments work is that the longer you leave them (notwithstanding the risk of investments) the more you accrue. That means if you can begin this process in your teens, you have a much better chance of becoming a millionaire by the time you are 30 than you would if you relied on the wages you are likely to earn alone. Here you have created yourself an opportunity that makes squirreling that extra bit of money away now and again, a brilliant financial move.

Do you have any tips for managing your finances? What do you think you personally need to improve on?

Lots of love always,

*Please note that this is a collaborative post*

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