Teenagers find it hard to manage their money. If they take some simple measures, the task will be much easier.
TAGGED UNDER: Financial Management Financial Planning Money Saving
When you are a teenager, you often have a limited amount of money at your disposal. So, it is very important that you spend that money judiciously. It is likely that, you are unable to figure out as to where all your money has gone. It is an indication that, it is high time you develop the habit to monitor your expenses and spend more carefully. Some of the tips given below can help you in this task.
The money that you get every week or month is fixed. So plan your expenses in advance. Make a list of those expenses that are essential and allot a certain amount to each of them. It should include major expenses like cell phone plans, restaurant bills, gas for car, etc. Additionally, a small amount has to be kept aside for some minor unplanned expenses, which are bound to happen.
Monitor your Purchases
Planning your budget is not very tough. But sticking to the budget is a difficult task. Keep a close watch on your expenditure. It can happen that you make several small unnecessary purchases in a day, and that may sum up to a really big figure. In order to avoid this, pen down the things you bought and their price everyday. On weekends, find out if your expenses matched up with the estimation in your budget of the week. If not, then make sure you cut back on a few spending in the following weeks to fit your expenses. When you succeed to restrain your expenditure, compliment yourself.
Save for Expensive Purchases
When you come across an expensive item like a cell phone, that you wish to buy but do not have the money, you feel disappointed. You feel that luxury items like these are not meant for you. Do not lose heart. That does not mean you go out and buy it impulsively. Start saving some amount every week. Suspend all kinds of unwarranted spending for a few weeks. Eventually, you will be surprised to find out that, you can actually afford to buy the things which once you felt were out of reach.
Avoid Using Credit Cards
You may feel it is very convenient to buy things using credit cards, just because you do not have to use cash on the spot. Later, you will realize that you have ended up paying more than you had wanted to. It happens, because the interest rates charged by credit card companies are very high. So it is better, if you shop using cash payments in order to save a good amount of money.
Handle Cash Machines with Care
There is no doubt that cash machines are very convenient to withdraw cash. But, it often happens that after withdrawing money from a cash machine, we tend to forget how much cash has been taken out. This can lead to the risk of overdrawing on your account. So, make sure that you keep a track of it.
A little bit of attention and practice will help you develop the skills of money management. It is one such quality, that will help you all your life.