Financial Literacy for teens: The Key to Success

Financial literacy for teens is important at any age in life.  Knowing how to spend and save money is a necessary expertise, especially in today’s turbulent economy.  As college students, many of us have student loans, credit and debit cards.  These economic resources, if used recklessly, can lead down a dead-end road called debt.  Financial literacy must come about now more than ever before.  The current economic conditions are frightening, and require attention immediately. The economy has reached a nerve-racking low for the first time since the 1980s.

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 Today people are saving less, spending more, and incurring debt at faster rates than ever before.  The American public’s lack of financial knowledge is one of the factors that have significantly contributed to the current state of the economy.  Financial education may be foreign territory to some, but its magnitude can no longer go overlooked.  The means to achieving financial knowledge is not a difficult one.  Yes, certain obstacles stand in the way, but it is nothing that cannot be accomplished.

Here are 5 positive habits to help you become more effective in money management workshop, no matter how much you start with:

 Involving whole family in the learning process:-

Engage your whole family in learning about how to effectively management of money. Don't keep your financial affairs or investments a secrets. Ongoing communication about your financial matters is an absolute must if you would like to establish faith, accountability and a sense of financial peace within your households.

Reduce your debt load and expenses while increasing your savings:-

Could you decrease your expenditures and be content with getting by with a little less? List three to five areas you could cut back on right away that would allow you to reallocate the money not spent to increase your savings over time. Reducing your debt load may be a long-term goal, but eliminating the heavy burden of bad debts, you can begin accumulating wealth. 

Gain peace of mind with emergency funds:-

There is nothing like being worry free of knowing how you will pay for the next crisis down the road. Your aim should be to build up enough reserve funds over the course of the next year to cover three to six months of your normal expenditures. Start by opening a savings account or money market account that doesn't penalizes for deposits and withdrawals. 

Creating balance in your money management plan:-

The following money management plan allows you to build up your savings and rewards you every month for your efforts. 

For one thing your college orientation idea on the first day of the academic year will help you to then become much more familiar with the college fields and the facilities available there. Of course you may have went to a college open day sometimes prior to your college orientations, but this will usually have only given you a limited idea of what the facilities are actually like and what is available to.