If you are a teenager, you must be living off the pocket money or monthly allowance given by your parents. You can still make some powerful financial choices with this money that would help you have a steady future. With the academic pressure running alongside, money management must be the last thing on your mind. However, if you inculcate some good money habits now, it would go a long way.
Here are some simple financial tips that you can follow:
Allocate Your Pocket Money
It’s important to allocate a specific amount of money for specific tasks. Instead of spending all your pocket money, you can allocate a certain portion of your fund for savings. In order to save in a disciplined manner, make sure you save first and spend later. If you start the habit of saving now, no matter how small the portion is, the habit would stay with you and help you in the future.
Open A Bank Account
If you don’t have a bank account in your name yet, this is the right time to get one. There are many banks which offer tailor-made Savings Account for teenagers. Although the account would be overseen by your parents, it would be in your name. It is after all the first step towards financial prudence.
Get A Part-time Job Or Work During Vacations
If you spend one vacation holidaying, try and utilise another one by taking up a part-time job. You can use the money you earn for your regular expenses and savings. If you get free time during your school days, you can use that time too to make money. However, make sure the job doesn’t become a burden on your college work.
Cut Back On Spending
Who doesn’t like eating out or going for a movie once in a while? One doesn’t need to cut back on all the fun to avoid overspending. However, too much of it could eat into your fund. You could try out ways to reduce the expense by splitting the restaurant bill among your friends, giving refreshments a miss while watching a movie, travelling by public transport, etc.
Invest Your Savings
Instead of stashing up cash in a piggy bank, you can put your money in a Recurring Deposit or invest in Mutual Fund SIPs in your parent’s name. This would help you to get good returns. Recurring Deposits and SIPs drive you to invest regularly in a disciplined manner.
When it comes to financial planning, it’s never too early to start it. Rather the sooner you lay your hands on it the smoother your finances will get with time.