As a teenager of this generation, there is a lot on your plate – which college to choose, career path, clothes, music, food, alternative career choice, hobby, etc. The world is your oyster and you would want all the advantages you could get to achieve your dream. One of the important aspects of discovering yourself is having funds to open doors to opportunities. Here are a few tips that you can keep in mind while embarking on your journey.

Start to save early – There is no right time to start saving. Savings help you build a corpus that you can cash on later.  It can help cover unexpected costs, pay for your college, for a house and the possibilities are endless. How do you start saving? Whenever you receive money – for chores you have completed, birthday cash, gifts during festivals, prize money, etc., pay yourself first. Put some money aside just like you did in your childhood days in a piggy bank and see how it grows.

Need vs. Want – There is a thin line between what you need and what you want. Sometimes people confuse wants and needs to be the same which  isn’t true. Having a roof over your head, food on the table are examples of needs, whereas; want is something that you can do without, which is a desire rather than a necessity. There will be many times when you will have to decide spending on necessity is important or on something that fancies you. But if you have a clear goal and understanding of what is needed, the decision will be easier to make. That being said, if you budget and save properly, you can enjoy both worlds.

Plan your month – Planning is an important component of life. It  is required to shop, study, game strategy, wedding etc. Then why would money management be any different? Jot down what all you need for the month, what funds are available and if you have enough to cover everything. This will help you budget and keep track of your expenses. Keep an eye on your plan to ensure it is going according to plan.

Power of Credit – Credit reports are a tool that helps banks and financial institutions to check your financial credibility. Hence, the credit score on your report must always be good. Just one bad decision, like delayed repayment of a loan, maxing out your credit card, is enough to send your credit score tumbling down. It will take years to recover your credit scoring. A good credit score will help you secure a loan, get a job, a house and other things. Therefore, it is ideal to have a good credit score.

Frugal Spending – Another way of saving is to spend smart and wisely. Do a little bit of research and scouting before buying anything. Look for discounts and sales, bargain a good deal. Choose a lesser value product if they are performing similarly. It may look like petty money that you are trying to save, remember Rome wasn’t built in a day, the same way; your savings will need everything that you can save to grow.  When the spending is under control, it will also help you avoid debt.

Avoiding debt is one way of creating wealth. With debt comes high-interest rates and long repaying years. Your hard-earned money will get exhausted repaying the debt that you may have taken long back.