In most cases, teenagers don’t get to learn about finance in school. This lack of finance education can be detrimental as they become young adults, they may be completely clueless about how to save money, stay out of debt or even apply for a credit loan. In fact, according to a study on ONS, “around 8% of young people (aged 16 to 24 years) in the UK were finding it difficult or very difficult to get by financially”. However, there are many tricks and tips that could help young adults to get a better grasp of their finances.
It can be tempting to buy everything you love and fancy, but it is essential to learn when to stop and take a step back when it comes to financial matters. It can be even more difficult when you’re used to being spoiled as a child, getting out of the habit of getting things as soon as you want them can be a challenge. Ask yourself: do I really need that new phone? Should I really go out with my friends tonight? Try taking a deep breath and think if it’s really worth it.
Starting an emergency fund can be very handy in case something unexpected happens such as an abnormally large bill or if your car breaks down and you have to pay to repair it. In addition, if you get in the habit of putting money on the side, then you’ll end up with extra cash for holiday money or a special treat for yourself or your loved one. It’s also important get be prepared if you’re going abroad, exchange rates can be a nasty surprise and it’s better to be prepared for it. You could use an international money transfer tool to see how much money you’ll get according to what bank or service you use
Keep track of your money
Whether it’s a personal finance book, an excel sheet or a finance app, keeping track of what comes in and out of your bank account can make all the difference. Budgeting is key to a healthy relationship with your finances. Make a note of all the bills and try to budget around it, you could also ask for utilties to come out at the beginning of each month, so you know where you’re at by mid-month. It also helps to keep track of all the little things such your morning coffee or a sandwich at lunch, they all add up in the end.