Be the money savvy one in the crowd

Everyone likes to have friends, be in a group, be popular.  But you have to be wise too.  Just because everyone else is doing it, doesn’t mean it’s the right thing to do…… you’ve definitely heard that phrase before….but it’s true. Think for yourself. Trust your gut.

The majority of those your age truly don’t know how to handle money.  Maybe it’s simply because no one has brought it up.  However, before you know it you’ll be out in the world, a job, college, an apartment….and bills.  Bills you incurred, and are responsible for paying.

Learn before then – when you’re receiving an allowance (hopefully you’ve done chores to earn it) or maybe babysitting or mowing lawns etc.  Doing something that gives you some money for yourself.  Learn how to budget, how to divvy your money into categories.  Saving, holding aside, spending.  By starting now, saving right from the beginning, you’ll be way ahead of everyone.

The first rule is….Pay Yourself First.  That means… Save … some. Be disciplined about saving. Open a bank account and deposit it as soon as possible after you receive it.  Put some aside if you’re saving up for something in particular, thus teaching you that until you have the full amount to pay for an item, you don’t buy it. And yes….. you can spend some, and have a little fun.

Loaning money to your friends….hmm….maybe to get a bite to eat, is okay, but the word ‘loan’, means the borrower will pay the money back to you as soon as possible.  Do it once, and once only….If they have ‘forgotten’ to pay it back, don’t be shy, ask for it.  Do not loan a second time If they have yet to pay back the first loan.  This works both ways….if you need to borrow a few dollars…, be responsible, pay it back as quickly as possible – it’s the right thing to do.

Learn how to use a check register (or make a spreadsheet).  It’s easy, and it lets you know where your money came from and where it went.  It will keep you watching for overspending and nip it in the bud…..in that way it won’t get out of control.  You will get in the budget habit right away, and you’ll have the pleasure of watching your savings grow as well.  Every cent counts.

If you learn how to handle money properly early on, you will be less apt to get into a financial mess later on.  Discipline is key.