As schools and colleges do not include personal finance as a subject, it leaves many students and youngsters in the lurch about how to deal with money, opting for credit, and to avoid debts. That is why schools or colleges must include the subject to help students save for emergencies and higher education.
According to an article published in https://www.huffingtonpost.ca, there are some lessons that all youngsters should learn about personal finance. These include knowing one’s credit score, avoiding bad loans, learning to live within one’s capacity, and things like that. Here are some of the best financial tips for youngsters:
- Eric J Dalius talks about managing your financial future
You need to learn to manage your money; else, people will take advantage of your situation. There are some dishonest, unscrupulous commission-based agents, who work for shoddy finance agencies and prey on youngsters. Others may not mean harm to you but give you poor counsel that lands you in a big financial soup at a tender age.
Therefore, avoid trusting others for counsel; take responsibility, and read up a couple of books on personal finance for youngsters. It will help. When you know how to invest and where to invest, no one can mislead you. Whether it is an unscrupulous financial planner gradually draining your bank account or someone inexperienced offering poor financial advice, you must stay away from such people. EJ Dalius believes that you should stay away from friends, who love to see you blow your money each weekend on them.
- Exercise self-control
Usually, parents teach this skill to their kids. Then, you should know that the more you exercise self-control to buy expensive stuff, the better it is for you to save more and keep your money in order. Then, you can buy products on credit, but it is wiser if you wait until you save enough to purchase an expensive gadget. There is no point in paying high credit card interest on some denim or a smartphone.
Avoid the habit of buying everything on credit even if you cannot afford to pay the dues on time. There are teens, who, keep paying for products they bought on credit for 5-7 years. Try to put aside some money every month for emergencies, even if the amount is small.
- Watch where you are spending the most
When you sit with your expense and income statement, which is your bank statement, you need to ensure that your expenditures do not cross your earnings. The best way to deal with this problem is through budgeting. If you find that you are spending extravagantly on movie tickets and refreshments at a plush theater every weekend, it is time to control your expenses. Keep these costs as low as possible. You can always go for movies, but the best ones, and not every Hollywood film that hits a theater near you.
Youngsters should start saving early so that they buy a plush apartment later in their life. That is a good investment. Avoid unnecessary expenses.