Doing your financial planning early is your ticket to financial freedom in the future. Parents can help in enlightening their children about this.
Typically, teenagers ages 16 to 19 (or maybe younger) can already work part time, and if their money is used wisely, this can give them the benefit of owning a cool gadget, spend money on fancy restaurants during their dates, or even save some for their college. But aside from spending, you can also use it to start managing your financial life, to prevent towering debts and being broke when you get older.
Financial planning does not mean limiting yourself from enjoying the things many people enjoy. It means setting a goal, which boils down to preparing money in the future, so you have some money to pull out of your pocket during the rainy days.
Teenagers may not have enough money to save, especially now, when every move we make would mean ‘expense’. But teaching teenagers the value of saving some, will greatly help them to prepare their lives in the future, and prevent a lot of financial difficulties and debt which can start really soon, without proper planning.
The benefits of doing your financial planning in your teens brings you the following:
It Will Help You Stay Focused On Your Future
Once you learn the value of saving some money (no matter how small or big it is) will keep you focused on your goal to reaching something ‘better’ in the future. You will be less careless with your spending, and your mind will be open to all of the small deeds of saving like using coupons for food and groceries, and watching out for discounted or sale items, instead of splurging on regular priced items right then and now. You will be able to develop the sense of thinking forward and what you want to be in the future, which is good to learn at a very early age, because this will be your ticket to a better life ahead.
Develop Long Term Goals
It is always nice to develop long-term goals, because no matter what life brings you, you will always have a steady view of what you really want to achieve in the future. Short-term goals can change easily, especially when a sudden change happens in your life. For instance, your earnings during your teens might not be as big as when you finished college, and with larger earnings, your lifestyle may change, which will greatly affect your goals in the future.
It Will Keep You Motivated All The Time
Working on a financial plan and sticking with it will keep you motivated. You are motivated because you have set goal that you want to achieve deeply, so you will be eager to work more and earn more, so you can save more.
Financial planning and goal setting works hand in hand. It is ideal to do it at a very early age, because the practice of saving money and being wise on your spending will be carried on as you grow older.