Personal Finance for Teens
Start As Early As Possible
At this point, you must be wondering-
- “ I am young, What’s the hurry? “
- “ I do not have the time for this “
- “ I don’t understand this “
- “ I don’t make enough moolah for this “
Well, it’s only natural that these thoughts spring to mind when you are about to embark on something considered to be an adult affair in today’s society. However, consider this, aren’t these excuses we all make at some point in our lives? And more so for the good things- dieting, exercise, homework, or any other good habit, we want to commit ourselves to. These mental blocks have to be overcome, they hold us back from unleashing our true potential.
Moving forward, we are all self-aware of the stature of money. It is quintessential for our survival. So much so that most of us are stressed about it. A Cigna TTK wellbeing survey in 2018 indicated that around 82% of Indians are stressed over work, health & finance-related concerns.
We worry about our future well-being at the expense of today. Doesn’t sound like a good deal right?
I’ve seen ladies & gentlemen, irrespective of their financial status getting wrinkles on their forehead by just ruminating about these expenses- their child’s education, a big fat Indian wedding, a new car, a bungalow & even after providing for all this they want to leave behind something for their grandchildren too.
Noble thoughts, indeed. But is it worth being anxious about their entire lives? All these expenses can be well taken care of by managing one’s finances in the right way. It's not rocket science.
As a teenager, the biggest factor in your favor is time. You can choose to make your entire life tension-free by being prudent with your money. And those who start early, receive a major head start (More on this later)
Recount the thrill of outpacing others in a Need For Speed race with a NOS engine. This is no different, although it certainly conforms to the law.
Remember the old saying- "Time is money."
You are at an advantage with Personal Finance over the majority. And most certainly it is so because you are young & have time on your side.
Note: "No amount is too small to start your journey of financial freedom.” Rather, it is extremely important to start early, as we saw in the above table. We will discuss more on this topic in the next unit.