High School students have immense opportunities to work and earn income. Once we receive the dough, it’s time to understand the smartest ways to get the most out of our paychecks. Learning to spend the money on things we need rather than want, and investing in savings will establish readiness to prepare for the future.
Everyone has unlimited wants, but there are certain things you need to have. As a consumer you should know and have the ability to differ between what is necessary and unnecessary. You may want the new Stanley cup or video game , but you need to pay for your gas or subscription plans. Solving this dilemma is simple, when getting your paycheck, see what money you need to spend towards any bills or priorities, see how much money is left over that you want to spend and then put a portion towards your savings account every time. This is called budgeting and it will help your investments grow. When becoming an adult you will have bills to pay like water bills and electrical bills. Practicing budgeting at an early age can help you be better prepared in making sure your bills are being paid on time. When using a credit card, timely paying on items and purchases will help increase your credit score. Which is really important in large purchases, like a house or car.
Establishing a savings account is an important thing you can do right now with your money. A savings account is an emergency fund, which is exciting to watch grow. Once you get in a routine of putting money in your savings account you are investing in yourself. The key to a savings account is to not take out money from it. Keep growing your savings account and other investments at an early age to adulthood and it can help you retire sooner.
By understanding the differences between your wants and needs, making sure you have the money to pay your expenses, and taking a percentage out of your paycheck into your savings everytime will help your interest grow and you will feel more secure with your financial situation. Happy saving and budgeting!