Teens — Learn These 3 Financial Skills and You’ll Be Set for Life
If you haven’t figured this out already, school doesn’t teach you all the things you need to know for life on your own. Sure, you’ll learn algebra and why mitochondria are the powerhouses of cells, but what about real-life skills like managing money, how to cook, and finding a job? Fortunately, you’ve got the internet at your fingertips, so use the time you have left living at home to start learning and experimenting with these three handy financial life skills.
Knowing general tips for investing is good, but there are also a few major strategies to know. Many teens don’t learn about investing until much later in life. That’s when they’ll often make several high-risk moves that may or may not pay off for them. Learning to save money and invest it wisely can make it easier to have a nest egg for later on as well as to be able to retire early. Mutual funds, 401(k) accounts, IRAs, and other investment tools can be advantageous. Teens should know what each one is, the pros and cons behind them, and how investing can help you in the future.
The world economy is just as important, if not more important than the local national economy. It has an impact on trade, finance, and much more. Knowing how global economics plays a role in the U.S. financial markets, insurance, stocks, and more will make it easier when investments are being made. This knowledge is so valuable it’s one of the main reasons that people take internships abroad. Additionally, anyone who’s going to work in business will be affected by the global economy in one way or another. Teens need to know which countries have economic stability and what it can mean when they don’t, especially if you dream of moving out of the country one day.
Every teen should know how to create a solid home budget. This includes balancing expenses against the income that they bring in. Plus, budgeting makes it easier to avoid the temptation of credit cards or high-interest loans. There are also plenty of other tips for avoiding bad credit loans and other risky ventures. If you nail down how to deal with your money responsibly now, you’re less likely to make poor decisions that can haunt you well into your adult years.
If investing, global economics, and budgeting are so important, why aren’t they taught in schools? That’s anyone’s guess, but you can take control of your own life and set yourself on the path to a more successful adult life by learning these things now. With even a basic grasp of these simple but essential concepts, you become more likely to experience success in both your bank account and future career.