There are a lot more advertising that encourages spending money than messages that encourage you to save money. This article readily, willingly and confidently reported on the less popular, but more reasonable version: how much should a teenager save from paycheck.
The purpose of this article is to highlight the basic concepts of economics that teenagers need to master. The three most basic concepts are so important that they are taught to my students in the first minutes of their first lesson.
My students immediately memorize the words of these three short sentences and remember them forever: save, save more, continue to save from paycheck. These are the three rules of economics. The challenge is not to memorize these few words. The challenge is to fit these very important ideas to your life.
A study for this article showed that the most important financial advice that adults wanted to give to children and teenagers was to save money. I asked several successful adults to share with my students and with me what these adults wanted when they were in the eighth grade would be something they knew about the economy. Their top ten, not surprisingly, follows the fact that the most valuable idea is to save money.
Ideas About Economics By Community Leaders
The following ideas came from local community leaders who were asked to tell us what they wish and wanted to learn about economics while they were in the eighth grade:
- The habit of saving a certain amount of money on a specific schedule.
- Prepare the budget for future spending.
- Needs have the highest priority, those things are optional that I don’t need but I want them.
- An object that you only had to have and to which you never paid attention, was not a good use of money.
- Use the value and the power of compound interest.
- Beware the trap of credit and debit card.
- Know and use the benefits of dollar cost averaging.
- Saving money at an early age brings great benefits later in life; The sooner money is saved, the more time it will grow.
- Save and be responsible for your retirement income, do not expect social security when you retire. If you get something, this is a bonus, but you can not expect anything.
- The saved penny is really a deserved penny, because it is money that you do not need to earn again to replace money spent.
There is no advantage in being obsessed with savings. Saving money is not an obsession. People consume goods and services. Money must be spent on essentials. Money should not be lost due to wasteful, unnecessary expenses.
How Much Should a Teenager Save From Paycheck And Other Resources
The best percentage of money a teenager should save from paycheck is 10 to 15 percent. Teenagers can make a wise judgment to understand the difference between needs and desires.
The life experience of teenagers can help to understand this fundamental difference. “I wanted to buy a new bike, but my dad said the bike I have is all I need. Yes, my bike works, but it’s not good. So if I save money, I can buy a new bike. I am thinking about how I can make money.
Maybe I will save money. My dad would be very surprised. “Money is saved in different ways, for example. Do not waste, find the best price, continue to use what you have, instead of buying something new, using coupons or other discounts, make cheaper deals. Eat food/snacks at home, not in restaurants or shops.
My mom said the ice cream shop was too expensive. It would have cost $ 8 if she and I had a snack there. For only 3 or 4 dollars, she can buy a lot more ice cream at the grocery store. We get more ice cream for less money. This is the only way to get ice cream, this is normal for me.
Important Advice To Teenagers
The most important advice I can give to a child or teenager about money is:
- Make a budget for yourself and spend according to your budget.
- Find out the value of money and always save something for some special day.
- What is important is not what you do, but what you save.
- Start saving at your early age. Even some snowballs over time.
- Plan your money and estimate its actual value for you. Ask yourself what money means to you and how you can make it do more.
- Save and invest early in your life. Study this discipline and the rewards will come.
- Learn how to handle money.
- Use compound interest. The power of 72 is a simple way for teenagers to master and understand how fast or slow money can double at a certain interest rate.
- Learn the value of time and money, pay attention to the cost.
- Save money for a special day.
- Save and pay all bills on time to ensure a good credit rating.
- Learn the value of a dollar. Find out the value of a dollar. Let the teenagers buy their things with the money they earn or save from paycheck.
- Save, save, save. This is the key to achieving your life goals.
- Control your destiny. The one who controls your money controls your life.
- Start saving in your early life with a salary to take advantage of compound interest.
- Keep calm and think.
- Save at least half of every dollar you make or get as a gift in a savings account.
- Do not take a loan or borrow money.
. From all that I learned about money, finance, and economics, one lesson I would like to learn earlier in my life was:
- Saving early in your life pays off later. You can save from your paychecks and other resources.
- Not just planning six months, a year or even five years, but ten to twenty years. Set yourself a financial goal.
- Make the maximum annual contribution of an individual retirement account as soon as you have income.
- Learn how to invest and distribute your savings and how to adapt them to risk throughout life. Be more aggressive when you are young and traditional with age.
- Learn how to create a budget and how to manage your money within this budget.
- Influence others, using your time, talent and money.
- Money is just money. Do not sacrifice your family, your friends and your life to strive for it. Ten times more money will not make you ten times happier. Live a balanced life and be kind to people. Do business with people that you like, because you will work with them forever.
- Do not believe sales talk. If this seems too good to be true, it probably is.
- Find out the value of a good credit rating.
- I knew that I had to save in advance on a bank account, but I had to invest in more risky options, such as stocks. Money is finite. It goes away. Prepare a plan B.
- By balancing the checkbook, you can avoid many problems. It’s impossible to live within your relationship if you don’t know how much money you really need to live.
- Plan short and long term goals. Just as you need to plan your bills, you should also plan your future.
spend on a cash basis only.
- Do not buy anything except your own home, for which you can not immediately pay. No credit cards
- Pay yourself first. Always save 10 to 15 percent of each paycheck for your own retirement.
By following the above ideas you can avoid money mistakes and help other people succeed financially.