Intro to Financial Wellness: Money Mistakes Teens Make
Between your part-time job earnings, birthday money given to you by your grandparents, and an allowance, it’s safe to say that you’re bringing in the wealth. However, knowing how to save the money you earn is as crucial to your financial journey as actually making the funds.
That said, consider this article an intro to financial wellness as you explore common money mistakes teens make that could impact healthy habits.
The mall is a common meeting place for most teens; it’s the ultimate hub for the latest fashion and enticing eateries. While buying items for yourself isn’t bad, consider prioritizing smart spending over impulse buying.
Many teenagers succumb to buying things they don’t need; some kids purchase merchandise they didn’t even want before spotting it at the front of a store! Remember that having poor impulse control can develop into a terrible habit that can wreak havoc on future budgeting skills.
Not Having a Savings Account
Adolescence can be a carefree period before approaching adulthood. You may plan to attend college and seek employment after high school. Regardless of your path, you’ll end up with some living expenses.
Having a savings account can help set you up for your future, especially when coming across unexpected expenses.
As a teen, you’re around your friends and classmates often. Once you grow close to one another, you might consider lending each other money during outings. At first, lending a few dollars to a friend seems harmless, even admirable!
However, some teenagers may not be as reliable as their peers in paying back a friend, resulting in strained friendships and resentment.
Not all credit is bad! Credit card payments can be better than using cash when purchasing items; however, you don’t want to use more of your credit line than you can afford.
Using up your credit can impact your credit score, affecting the possibility of renting an apartment or buying a house in the future.
While it isn’t uncommon to struggle with financial wellness, making money mistakes is part of becoming an adult! By remembering some of the pointers mentioned above, you can spot unhealthy financial habits and correct them early on.