7 Personal Finance Tips for Teenagers | 2021
Today, in the 21st century, dreams are taking place with high price tags. A car for Rs. 5 lakhs, a house for Rs. 50 lakhs, abundant lakhs for a prosperous education and billion (s) for a comfy retirement. As a matter of fact, fundamental needs are also lifted to dreams owing to the high cost associated with them. Thus, you are stringently required to either build a gigantic income or an ideal financial strategy so as to ensure that you meet your life goals including fundamental ones and the ones with high price tags.
Although, personal finance is not considered a required subject in most of the high schools or colleges in India. This elevates the absence of fundamental financial education in many young adults and leaves them clueless about making them aware on the ways to handle money in several ways.
Well, nobody knows when the core education system will be considering personal finance as a crucial subject, therefore, today we have brought this blog in which you will understand about the top 7 ways to help you with managing personal finance in your teenage span so that you can live a thankful life ahead. Let's take a look at these seven of the crucial components of personal finance tips for teenagers!
1. Obtain self-control
You're lucky if your parents taught you this skill in your childhood. If not then you need to learn it. As early as you learn the art of postponing gratification, the earlier you will discover it better and seamless to keep your finances in order.
If you establish a habit of putting all of your purchases on credit cards, regardless of whether you pay off your bill fully at the month-end, you’d possibly still be paying for those items across the next 10 years.
If you wish to keep your credit cards for the convenience element or the rewards they extend, always ensure to pay off your balance fully and timely when the bill reaches you, and do not hold more cards than you keep the track of. This financial tip is significant for establishing a healthy credit history.
2. Learn to manage the future of your money
You should learn to manage your own money as not doing so will lead it to be (mis)managed by other people for you. These people may be dreadful such as unprincipled commission-centred financial planners. Other people may also be well-intentioned but might not know what they're doing, for instance, your Grandma who really wants you to obtain your own house but you can only afford one by assuming a mortgage.
So, in place of counting on others for advice, get a hold of a couple of fundamental books on personal finance. Once you're furnished with personal finance knowledge, do not let anyone come in-between you and your money whether it is a spouse who slowly drains your bank account or companions who wish you to move out and blow an abundance of money with them every weekend.
3. Comprehend where your money flows
After you have read and perceived some of the books on personal finance, you'll realize how crucial it is to ensure your expenditures are not surpassing your income. The seamless method to do so is by building a budget.
Once you figure out how the value of your morning java adds up across the cycle of a month, you'll understand that setting up small, manageable adaptations in your day to day expenses can get you as big impact as getting a raise in your income.
If you do not waste your money on a big apartment at present, you would possibly be able to afford a dazzling condominium or a house prior to recognizing it. Comprehending how money functions is the supreme initiative towards turning it work for you.
4. Commence an emergency fund
One of the popular mantras of personal finance is to pay first to oneself. Regardless of what share you owe in education loans or MasterCard debt, and no matter how low your salary could look, it is a smart decision to get some amount of your total money in your emergency fund every month to confront emergency situations.
Possessing money in savings to utilize for emergencies can really help you get out of trouble financially and facilitate you sleep better in the dark. Also, if you get into the habit of saving money and do not negotiate with it, pretty soon you will gain quite appealing funds to cope with your emergency circumstances, you’ll have the funds for your retirement, vacation, etc.
5. Start saving for retirement
Retirement seems so far to strategize about but only a few understand why it should be taken into consideration in the teenage tenor. If not today, later you will have to consider it definitely but why we are advising to consider it in your teenage is the interest element.
The way interest functions, the earlier you start saving, the less principal you’ll have to pay to obtain the funds you need post your retirement and thus, if you start it in your teenage time, you will have to pay a lesser principal amount.
6. Shield your health
If you have not got insurance yet, do not wait for a single day; get the health insurance today for you. It is simpler to perform than to cover a car accident.
You can come up with a certain insurance offer by attaining quotes from different insurance providers and then comparing them on multiple elements.
Besides, you can also take steps on daily basis to stay healthy, such as having fruits and vegetables, conserving a healthy weight, working out, not smoking, etc. You will feel the benefits of getting insurance for your health on the road once you are not paying huge medical bills and your insurance is helping you cover the expenses.
7. Guard your wealth
If you are willing to ensure that each penny of your hard-earned money does not vaporize, you will have to take steps to cover it. If you rent or get renters the insurance to defend the substances of your home from events such as fire or theft.
Disability income insurance guards your valuable asset that has the ability to produce wealth if you ever come across a situation due to illness or injury.
If you are willing to maintaining your money, you can also get a fee-only financial planner to extend unbiased advice to you that stand in your best interest in place of a commission-centred financial advisor who earns money once you show up with the investments their entity supports.
Additionally, you should also consider guarding your money from taxes, which indirectly try to build a pension plan or you and confront inflation. You can consider investing your money in multiple investment instruments such as you can earn interest through high-interest savings accounts, stocks, bonds, market funds, and mutual funds.
In a nutshell
Being mature is all about taking tough decisions and thus the earlier you set them, the higher your future will look. Money does not grow on trees but a persistent financial plan derives from the wise decision.
The aforementioned tips were some of the best tips on personal finance that you can take in your teenage term and set your life up with happiness.
Furthermore, if you are lacking in funds and wishing to meet some of your crucial expenses, do not worry at all. Reach out to us via our app or website and avail of instant personal loans. To apply, simply download the Afinoz instant loan app from the Google Play Store and follow the steps to proceed with the process.