4 Things Teens Can Do Now to Prepare for Financial Independence
One of the things that teenagers aren’t taught in school is how to become financially independent. While some people struggle with it more than others, making financial decisions is something that we all have to learn in order to save money and budget.
Sometimes, the only way to become financially independent is to actually practice. Many teenagers are still living with their parents and can fall back on them for money if they need to. That being so, it is the best time to practice with money. In this article, we are going to cover 4 things that teens can do right now to help themselves prepare for a future of financial independence.
Get a job
Getting a job is a very beneficial thing for teenagers to do. When you get your first job, you will have to be fully independent of the choices that you make. Also, you will be making real money that you can buy real things with. Not only does the job help you with independence and allows you to obtain the money, it also prepares you for the future or work.
Work is something that most of the population will do in life. Getting a job in your teenage years is a great way to create an idea of how the future will be. As stated by BachelorsDegreeOnline.com, getting a job during your teenager years is valuable experience. Now that you have got a job and have to money to practice budgeting with, its time to try a few of these other tips.
In your teenage years, it is likely that you will be getting your license. As we all know, a license is no good without a car to drive. If you have a job or if you have money in general, you should consider leasing a car. There are two reasons why this would benefit a teenager. First of all, it is beneficial because you can have your own car that you are actually the primary owner of. Secondly, it helps you get into the habit of budgeting and being financially independent.
For those who are unaware, leasing a car essentially means that you get to take it and drive it but you don’t actually own it because you are making payments on it. Say, for example, a car cost a total of $5,000. If you leased the car for 10 months meaning that you would pay it off in that time, then you would be paying $500 a month for a total of 10 months. Leasing a car helps teens learn the concept of paying bills. While there are advantages to owning a car, like the ability to get an auto equity loan, leasing a car has benefits as well.
Like we said earlier, financial skills often go unspoken about in school. Although it may seem overwhelming to do, you always have the option to educate yourself on the matters of financial independence. This day and age, most people have access to the internet in one shape or form. Simply getting on the internet and doing a little research can go a long way. The first thing that you need to get a concept of is the value of money. Learn how much money you will need to make and how much you will need to work to earn that money. As teenagers, it is often hard to understand how much time our parents or guardians put into their home and belongings.
Also, learn that everything in life costs money. However, it is important to look at your financial future in a good way. Instead of worrying about how you are going to survive on your own, why not learn how you can make a lot of money. Especially if you use the tips we have covered here, you should be able to be financially secure. With that being said, it is also important to note that you don’t have to have a higher paying job to be rich. It is all about the decisions you make. 8 Money Tips For Teenagers is a good article for teens as far as education about financial skills goes.
Earlier in the article, there was a comment about making real money. If you can make real money in your teenage years, why not save it up? Saving money is always a good thing to do. Also, learning to save money is a skill that could make or break you financially. Those who do not save money have a hard time building wealth. Saving money is actually more ideal than using credit or loans because that way you do not have to pay interest. A stem from saving money is investing money.
As most of us know, the value of a dollar decreases as the years go on. According to buyupside.com, $100 will only be worth $64.19 in fifteen years. One of the best ways to try and get the most out of your money is to invest it. When you invest money, you are essentially letting it sit and build over time. Although it takes quite some time to begin to grow exponentially, it will become a large sum that you will surely thank yourself when it comes time to retire.