Building good money habits right from teenage is important. This is because knowing and taking care of personal finance takes time. Starting early also helps you save better for future goals, learn financial discipline and avoid monetary mistakes. All you will need is a strategic plan and a determination to stick to it. The process can be slightly overwhelming. But the good news is that there are plenty of simple tips.
Below are a few of the best management skills teenagers can adopt easily. Being able to practise and achieve them in daily life could be highly rewarding. Read on.
1. Open a Savings Account
The top Indian bank offers a minor’s savings account. Online savings account opening is for everyone aged up to 18 years.
The interest rate is up to 5% along with multiple features:
- Unlimited free fund transfers
- Unlimited ATM transactions
- Chance to earn interest on interest
- Free Visa Debit card that is valid for life
Having a savings account can cut the temptation of spending. This is simply because your pocket money or allowances are stashed away. Use a calculator to figure out how much time is required to reach a particular goal. Start putting money in the account accordingly. Follow your savings target and avoid frequent withdrawals.
2. Track Your Purchases
Write down where your money is going. This will help you put a limit and set a budget. For example, let go of the gym subscription if you do not plan to visit soon. Go for free e-books, newsletters and online monthly subscriptions rather than paid magazines. Consider having a single streaming service instead of multiple. Start being more watchful and selective with spending before opening an online savings account.
3. Use your Student ID
One of the best answers to ‘how to save money’ is using student discounts. These are offered at salons, restaurants, flights and similar services. Do carry your school ID or Aadhaar card to get your age verified. Top retailers like Apple and Levi’s and other brands like Spotify, Optus, Vodafone and Microsoft offer subsidised prices for students all through the year. All you have to do is ask before purchase.
4. Start an Emergency Fund
One good way to save for rainy days is an emergency fund. You can use the money to take care of sudden adversities like a medical need. This way you do not have to tap onto the savings account and the wealth continues to grow safely. Allocate money to this fund regularly to collect a sufficient amount over time. This way you can also save yourself from taking a loan at a young age.
5. Part-Time Job
Pick a simple source of income that can be pursued along with studies. For example, baking cupcakes, online teaching or paid internships over the weekend. These will polish your creative skills while helping you earn a good amount. Put a part of the money into the savings account and emergency fund. The rest is yours to spend and enjoy as you like.
You do not require to give up on weekend trips and movie outings or miss out on having fun with friends. Follow the above-discussed tips diligently to see the best results and avoid regrets a few years down the line.