Corbin Atack, a high school student, has observed that his classmates aren’t doing their best to manage money. They’re buying video games, basketball shoes, and lunch, but they’re not saving their money. Financial experts say that it’s important for teens to start good financial habits early. They recommend five ways to help high school students develop good habits.
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Part Time Jobs
When you’re in high school, one of the best ways to begin saving is by getting a part-time job. Although you may not have a full-time job yet, you can earn enough money to pay for your college expenses. You may also want to start saving money now to get your car or spring break trip. These are all great opportunities to save money.
Part time jobs are an excellent way to make extra cash. These jobs can help you pay for your education, and they can also boost your savings. In addition to helping you cover your expenses, these jobs are a great way to make contacts and network with potential employers.
If you have a vehicle and enjoy driving, you can also get a part time job delivering mail. Some cities have postal offices, so if you are willing to drive, you can get paid well for this job. However, there are some requirements. You must be able to drive and pass a simple postal exam.
Bringing Food from Home
Many students have the tendency to go out for lunch every day at school, but this is not always the most economical option. One way to save money while still eating out is to bring food from home. Often, it is cheaper and healthier to pack a sandwich or some other type of food.
The cost of a typical sandwich can range from $5 to $20 at a restaurant. While this may not seem like a huge amount, it adds up. By bringing your own lunch, you can save an average of $100 per month. Over a year, this could add up to $1,200, or over $12,000 in ten years.
To make things even cheaper, buy canned fruit or vegetables. Make sure you buy them in water or juice instead of syrup. Also, be sure to pack your fruit in unsweetened containers and avoid sweetened varieties. Whether you are packing lunch from home or buying it from a convenience store, it is best to carefully weigh the cost versus the value of the food. When you are making your own food, you can get them on sale at the grocery store, and the same applies to buying lunch containers.
Another way to save money by bringing food from home is to make large amounts of food. Large quantities of food can be costly, and sometimes goes to waste. You can save money by making large batches of soups and sandwiches, or you can even freeze them for later.
Avoiding High Interest Credit Cards
Avoiding high interest credit cards for high school and college students can be difficult. But, the right information can help you make wise financial decisions. You can avoid these pitfalls by learning about credit cards and their terms and conditions. You can also protect yourself from predatory tactics like overextending your credit limit. The CARD Act of 2009 made these tactics illegal.
The interest rate, otherwise known as the APR, is an important factor to consider. Most student cards come with high interest rates, but you can find some that offer lower rates only to people who have established credit. In addition, some cards offer introductory rates, which are usually good for a certain period of time (such as six months or a year) but may increase after that period.
Pay off the Balance in Full Every Month
The best way to avoid high interest credit cards is to pay off the balance in full every month. This will help you avoid paying interest, especially if you have a limited amount of money to spend. It’s also a good idea to set limits for what can be purchased with a credit card.
Although credit cards can be problematic, they can also be beneficial if used responsibly. Credit cards can also help students build a credit history that they will need in the future. Prospective employers and landlords often check credit reports to see if a potential candidate has a good credit history.
Budgeting
One of the most important skills for a young person to develop is budgeting. It involves knowing how much you make each month and how to divide it up between your wants and needs. High school students might not have full-time jobs or own apartments, but knowing how to set up a budget and stick to it will help them in the future.
A good budget will also help them build credit, so that they can take advantage of opportunities after high school. It will also help them save for college. It will also give them a head start on their peers who are just learning how to manage their money for the first time.
Involve Kids in Decision Making
Another great way to teach students about budgeting is to involve them in decision-making. They should help make decisions regarding common expenses, such as food and clothes. If possible, they should also help make the purchasing decisions. It is also important to teach them the importance of goal-setting.
When setting a budget, a high school student should set specific financial goals so that he or she can make decisions accordingly. Having a clear goal for a specific purchase will help the student to set priorities and make smarter purchases.
Among the most important budgeting tips for high school students is to be cautious about credit card usage. It is tempting to make purchases on impulse, but this will only drain your account and cause regret.
Before spending the money, write down the items that you want to purchase and decide whether they are really important to you. Also, try to avoid carrying a balance on your credit card, as it will end up costing you more money in the long run. It can also lead to a habit of living beyond your means.
Developing Financial Literacy
Financial literacy classes have been growing in popularity in high schools across the country. However, they have a few drawbacks, including the cost of hiring and training teachers and affecting other electives.
According to Carly Urban, an economics professor at Montana State University who has studied financial literacy, seven states currently require students to take a financial literacy course. However, some of these requirements won’t go into effect until 2023.
Use Real World Examples
It’s important to use real-world examples when teaching students about money. If possible, use financial situations that high schoolers experience.
Many educators try to teach financial literacy by acting out hypothetical situations, but these examples don’t stick in the minds of most teenagers. It’s much more beneficial to use smaller examples, more closely related to what kids experience as a teen.
Financial literacy is a crucial part of individual well-being. It helps students make better decisions about spending and saving. Moreover, it prepares them to deal with unexpected expenses and emergencies.
Without the knowledge of financial matters, it’s possible to make impulsive decisions that could have negative consequences. Financial literacy can also help people reach their goals and aspirations.
In the United States, financial literacy is taught through a program called Money Smart for Young Adults (MSYFA). Money Smart for Young Adults (MSYFA) The program teaches personal finance and builds relationships with banks. The program is provided on CD to teachers, and includes eight modules. Some districts have even recruited outside partnerships to leverage the program’s value.
Getting A Loan From Your Parents
If you don’t have a bank account, you can always ask your parents for a loan. While it can be tempting to use this money to help with living expenses, it’s best to save up for an emergency. Ideally, you should save up $500 to $1,000 to cover the expenses that may occur while you’re in school.
As you go through your high school years, keep building this fund. Many banks offer special savings accounts for high school students. The accounts often offer bonuses and lower fees.
Create a Budget
Another way to save money is to create a budget. By breaking down savings goals into small amounts, you can make them feel more achievable. Creating a budget can also help you manage bills later. It can be difficult to create and stick to a budget, but knowing how much you need to save will help you plan for the future.
Saving accounts are another great way to save for college. It’s important to find a high-interest savings account for high school students if you’re under the age of 18. Saving accounts are typically available at most banks, although you’ll need to work with your parents to open an account. If your parents don’t offer savings accounts, they may recommend a credit union or local bank.