High school life is full of choices and changes. Students trying to figure out where they want to go to college, joining extracurricular clubs, and just life overall. With everything going on, it’s easy to overlook any thought to finances as majority of the high school students are limited to allowances or income from a part time job. However, this article will help you plan financially well for the future.
As we all know, the financial choices we make can affect our adult life, and so it becomes even more important to learn and be aware of some smart financial planning tips.
1. Learn the basics of Budgeting: What is a budget and why to be need to stick to it? A budget is an estimate of income and expenses for a set of time. Sticking to a budget is a crucial part of financial planning and well-being. It allows us to take control of our money to reach our financial goals.
2. Look out for Scholarships: Students should not hesitate to search for scholarship opportunities. This is a great financial move that can help save thousands of dollars over the course of your college career.
3. Set small term Financial Goals: Students must learn to set small and achievable financial goals. This inculcates good money habits which in the long run helps us succeed.
4. Start Savings account: High schoolers need to have a savings account they can turn to. This can help build a stash of money which will not be the case if one relies on a line of credit cause that can lead to monthly expenses for repayment.
5. Understanding Debt: Understanding how debt works is important to help one make smart money choices. Bad debt includes high interest credit cards, new car loans, and student loans that have potential to be carried over for years. So, its crucial for the students to ensure that they build their financial foundation with good debts which have lower interest rates.
6 Right use of Credit cards: One should ensure that the credit card is being responsibly used and does not rack up a ton of bad debt. There are tools, like Award Wallet, Quicken Classic Premier etc to name a few which are available in the market which can assist in judiciously spending money. Award Wallet helps with tracking credit card rewards and points. Quicken Classic Premier allows us to manage and pay the bills in time, track spending and have a holistic view of financial accounts. Additionally, for a comprehensive view of one’s finances, we can leverage apps like Mint, which is a free app that consolidates multiple accounts and tracks spending and helps monitor credit score.
6. Building Credit: The best way to build credit is to accumulate good debt and make timely payments so that one can increase the credit score. This proves your creditworthiness and allows lower interest rates on loans. There are many benefits of having a good credit score. Good credit score will eventually come handy in future when one decides to buy a house or take a personal loan.
Conclusion: It is much easier to prepare for a bright financial future when the student adopts healthy financial habits. Some savvy financial planning when on is young will go a long way in helping one reach financial goals as an adult.
