Money Management

Finance tips for teens

Money+Management

When receiving my very first paycheck, I was so excited that I had to spend it. I wasn’t aware of the importance of money back then. Now I want to save my money and become independent so I can create a solid financial standing before college. My new strategy called “The Game Plan” has helped me so much. I have more than what I thought I would have saved.

The plan works like a pyramid. It starts off with a great base. This base has to consist of discipline, goals, and lists of daily uses.

Discipline is the biggest part if someone wants to save money. I personally want the most out of my paychecks. I plan out what I’m going to do the rest of the month. Also, I go ahead and move money over to my other savings account or pay off debts like my phone plan or gym membership.

Debt is the worst thing to get into and is sometimes the hardest thing to escape. Each month or paycheck, you should pay off anything that will grow with interest as it might affect a future purchase. Payments should be paid off, whether to a friend or a financial institution.

As part of the plan, create a record of daily spending activities. After this list is created, I can go through it and cut out any unnecessary purchases. For example, instead of going to Starbucks every day, go every other day instead. Cutting back on the amount you spend will increase your savings.

As of last quarter, my spending habits have decreased by a full 25% and my savings have risen 15%. I’m determined to increase my savings goal and lower my spending by 20% in the next quarter.

By saving as much as you can, you will be prepared for emergencies that might happen, like a car accident or an increase in bills.

Pay attention to your account and plan for an upcoming cost. Don’t let money be a major problem in your everyday life. Live a little, be free, be with friends and don’t lose focus on what matters in life.