Learn How to Save Money As a Teenager

You’re just a teenager and you think that there is still a long time before you can start thinking about savings. There’s your high school, tuition, extra-circular activities, and the whole Game of Thrones season to think about! Money surely has very little or no place even in the remotest corner of your mind. However, if we keep the present volatile economic environment in mind, it is a big mistake on the part of the teenagers to relegate money into the essentially “adult” world. As a teenager, you do not have to understand the complicated aspects of the world economy, investments, or stocks. However, you should be prudent enough to identify the regular avenues of savings and be more disciplined with your financial habits. It is important to develop the habit of saving from an early age. If you are confused about how to save money during your teens then make sure you follow through with these tips.

Develop an Understanding of Money

You might still be in the zone where you think that there is no rush to save money. However, the more you postpone your plans to save, the lower your eventual net worth will be. If you can end up saving even $1 per day from the age of thirteen, just come to think about the amount of money you can end up saving when you turn a year older. The key is to stick to your savings! Learn to differentiate between capital and income. The capital can be directly likened to an asset which will generate income. For instance, if you were to have a house that you owned and rented out, then the house will be considered to be your asset and the rent your income. Start educating yourself about the simple concepts of money starting now!

Are You Tempted to Use Your Credit Cards?

Be on your guard against using credit cards too often. The major risk of credit cards is that you can end up incurring major debts if you absolutely have no way to pay your bill on time. The banks will be use sugar-coated words to lure you into taking these credit cards. However, if you’re in doubt, you should learn to refuse such offers. If you’re absolutely against carrying cash while you are out shopping or eating, you should consider carrying a debit card. Unless and until you have a real need, do not let the bank fool you in to taking credit cards. Contrary to the general notion among teenagers, a credit card is not really your passport to affluence!

If you can get your parents to setup a credit card under their account, this could be a good way to go. If you can use the card responsibly, it is a great way to begin to build your credit while under some level of supervision. This is what my parents did for me. I got a credit card when I was a senior to be used for gas for the car only. It helped me to learn financial responsibility as a teenager in bite-sized pieces.

Are You Using Your ID Card to Your Advantage?

Learn about the benefits of using your student ID cards to receive great discounts. You can usually snag yourself 10% – 20% savings if you remember to carry this with you and inquire if a student discount is offered.