What is Money Minute
It is estimated that United States citizens have a total of 13.86 trillion dollars in debt. This is amount is absolutely mind-blowing.
What has allowed things like this to happen? Financial illiteracy. According to the Financial Industry Regulatory Authority, 63% of Americans do not properly understand how to handle finances and are therefore- financially illiterate.
The aim of this column is to try educating teenagers on critical financial skills that they will need. From saving, investing, and paying for college, teens encounter a great number of life situations where having proper financial knowledge would be prudent.
The information for Money Minute will be based on common but little known financial facts, and advice from successful people. It is my hope that this column aid students in having a slightly better understanding of how to handle their future finances.
Count your pennies and your dollars will take care of themselves.
At this fragile stage in life, it is important to stockpile financial resources while expenses are low. In other words, saving should be the primary goal of teens today. Far too many people do not understand the importance of saving, and the freedom that it will bring them later in life.
The key to having financial stability is saving. The old mantra “Count your pennies, and your dollars will take care of themselves,” is all too true. By saving small over the next few years, it is amazing the resources that will build up. For example, saving a mere $25/week for a year would result in $1,300 in total savings. This means that doing a way with a few trips to McDonalds will help you feel more financially free.
Teens have very little expenses, and therefore should save what they earn. However, there is always the chance one could lose money.
Expensive emergencies can occur in a teen’s life such as: crashing a car or breaking a $1,000 iPhone. When these accidents happen, it is prudent that one have finances in place to cover the expenses. Therefore, teenagers should save now, before these events occur.
All in all, saving is extremely important; therefore, the challenge is to find an amount that can be saved and start setting it aside. The benefits will be amazing.