When you are a teenager, it is very hard to manage your money. So, here are three effective ways to keep your finances in check.
- Create a budget. Write down all your income and expenses for a single month. If you’re spending more than you make, you’ll need to cut back on some of the things you don’t need. Creating a monthly budget will help you with your short-term and long-term financial goals. You’ll learn how to make your money last until the end of the month and have enough left to put into savings.
- Do not use a credit card. Every time you use a credit card, you risk going into debt. You’re also spending more money on every purchase because you owe interest when you don’t pay off the balance each month. With Visa prepaid credit cards, you put money on your card before you use it, so you can’t go over your self-imposed spending limit. You also won’t pay any interest with prepaid cards.
- Set up a savings account. Put your money in the bank. Just take out the money you need, so you’re not tempted to spend more money than you originally planned.
Don’t blow all of your money as soon as you get it. You should put a significant amount of the money you earn into your savings account. When you make goals and stick to them, you’re teaching yourself to be more responsible and you will have better control of your finances as you get older.