Think you’d benefit from improving how you manage your money? If so, you’re not alone. In a recent survey
, 93% of teens said they need financial knowledge and skills to achieve their life goals.
Whether you’ve learned basic money management from your parents, at school, or through your own initiative, gaining and applying new and beneficial financial habits will help you throughout life.
Here are six great financial habits to weave into your world, if you’re not doing these already:
- Regularly save your money – If you regularly receive money through a job, allowance or gifts, that’s great! Rather than spending all of that cash, make a habit of saving a set percentage, say 50%, of what you earn or receive. Do this regularly, and in practically no time; you’ll have a nice sum for yourself. A Dinero savings account is an excellent spot for your savings.
- Set a regular budget for yourself Plan to spend no more than a set amount each week (or month) and stay within that limit. Money management tools like a Dinero checking account or a Dinero Visa can help you keep track of your expenses and stick with your budget.
- Limit recurring “small” purchases – Buying a $5 premium cup of coffee for yourself every now and then is fine. Doing so every weekday (5 x $5 = $25) adds up – $100 in just four weeks! Be sure that any “small” purchases you regularly make don’t become a habit.
- Consider “needs” versus “wants” – Not all purchases you’ll make are equal. A new school backpack to replace a broken older one is more of a “need.” A new pair of tennis shoes to keep up with the other kids at school might be more of a “want.” The more you can limit your bigger purchases to “needs” versus “wants,” the more of your money you’ll be able to save.
- Have long-term financial goals – It’s good to set goals for major financial purchases later in life, such as for a car or college education. Having goals will help motivate you to regularly set money aside to achieve them.
- Have an “accountability partner” – Even with the best of intentions, it can be tough at times to stick with your goal of achieving positive financial habits. That’s why it helps to have an “accountability partner” – such as a parent or sibling to regularly remind you of your commitment to, say, save your money, or to hold off on making an impulse purchase.
Visit the Dinero Teens page
to learn more about what financial benefits Advancial offers for teens.