Is there any serious financial advice that befits a high-schooler? As they are the ones who are all set to begin their financial lives, they will be in dire need of expert financial advice. A high-schooler might be earning $20 for babysitting or might be looking forward to earning a new source of passive income? It can’t be denied that high school is definitely one of the best times to build all those good monetary habits. While you grow older, you have to keep fine-tuning the basics so that you can keep adjusting your habits accordingly.
One can never be too young to know what money is and to know the reason behind saving more than spending. Such things need to be decided at the beginning of the budget and they keep changing once you get older. Here are few vital tips that you can give your young adults.
1: Learn the tricks of budgeting
You may already know the basics of spending less and saving more but what are the ways in which you can keep track of your income and savings? While there are some who prefer Excel spreadsheets like Mint or other apps, there are others who prefer doing it in the old-school manner. Whichever may be your style, you should ensure making it a habit. If you still don’t realize how much you spend on food and how much on groceries, you have to be more careful about your expenses. Learn the basics of budgeting and keep a tab on all your expenses and the little bit of income that you earn.
2: Set goals that are realistic
The money goals in high school usually come in different sizes. While some are small, there are some others that are bigger like the costs of car repairs or college savings. Decide on the amount that you would like to save for your goal, for example a $200 for a spring break trip along with your friends. You can crunch those numbers and decide how much you want to spend on transportation, food and other expenses. The bigger and realistic your goal is, the more you can save by following it.
3: Inform yourself on finances
There are some states which mandate financial literacy as a part of high school graduation. However, for most of the teenagers, financial education is something that is self-learnt. Now that you know the necessity of following a budget and setting a goal, you’re almost ready for more advanced personal finance like opening a card or investing in the stock market. You can seek help of online resources like the apps which can let you deal with your income and expenses.
Therefore, being a high-schooler, you have to be careful about dealing with your finances so that you don’t make any wrong decision about staying on top of your finances. Talk to people who have successfully managed their finances so that you can learn from them.