Being smart with your money is essential, regardless of your age. However, when you are young, you may not have much money experience. As a result, it's vital to start early so you can make the most of your money.
Whether you're saving for something big or just trying to get a handle on your cash flow or just completely starting to learn about money, we've got some top tips to help you earn and manage your money like a pro.
Understanding Your Finances:
First, you must grasp what ‘finances’ means. It is your earning, spending, and saving money, but also delves deeper into things like investments, taxes, and budgeting. It may seem overwhelming initially, but once you understand these elements, you will become better at making smarter financial choices.
How can you start generating some extra cash?
Side Hustles: Got a skill or a hobby you love? Turn it into a side hustle! From freelance graphic design to tutoring, the possibilities are endless. Websites like Fiverr and Upwork are great places to start.
Part-Time Jobs: Good old-fashioned part-time jobs are a steady way to earn. Whether it's retail, a café gig, or something related to your career goals, the experience and cash are valuable.
Sell Online: Got stuff you don't need? Sites like eBay, Depop, and Etsy are perfect for selling anything from vintage clothes to handmade crafts.
Manage your hard-earned money!
Set Goals: Short-term or long-term, having goals keeps you focused. Want a new laptop? Planning a trip? Goals help you prioritize spending and saving.
Budgeting Apps: Knowledge is power, especially with money. Apps like Mint or YNAB can help you track your spending and keep your financial goals on track.
Emergency Fund: Start building an emergency fund. Even a small amount each month can make a big difference when unexpected expenses pop up.
Smart Spending: Learn the art of smart spending. Look for deals, use student discounts, and always ask yourself if a purchase is a "want" or a "need."
Debit Cards and Bank Accounts: Once you've begun earning money, it's an excellent idea to set up a bank account and obtain a debit card if your age allows it. This offers not only convenience but also helps you become familiar with banking operations and how debit cards function.
Understanding Credit: While credit cards might not yet be a part of your financial journey, understanding them is beneficial. Learn about how credit scores function, the importance of a good credit score, how credit cards operate, and the potential dangers of falling into credit card debt.
Invest in Learning: Understand the basics of investing. Websites like Investopedia or The Motley Fool offer great resources for beginners.
Talk to parents or a trusted adult about your finances: Having open discussions about money, budgeting, and savings will encourage a healthier and more transparent view of personal finances.
Remember, your financial journey is unique to you. The more you learn and apply, the better you'll get at navigating your finances. Here's to making smart money moves in 2024! 💰🚀 #FinanceGoals #MoneySmart
Resources for Extra Support
The Money Charity: A UK charity dedicated to improving financial literacy, offering workshops and resources to young people to help them manage their finances.
MyBnk: A charity that delivers financial education and enterprise workshops to young people in schools and youth organizations.
StepChange Debt Charity: Offers free advice on budgeting and debt management, which can be invaluable for young people learning to manage their finances.
Citizens Advice: Provides free, confidential information and advice on financial matters, including how to budget and manage debt.
The Personal Finance Education Group (pfeg): Part of Young Enterprise, it provides educational resources and training to help teach young people about money.
MoneySavingExpert: Founded by Martin Lewis, the site offers a wealth of tips on saving money, deals, and budgeting advice, particularly useful for young adults starting to manage their own finances.
Bank of England Museum: Offers educational visits and resources, helping young people understand the role of the bank and the basics of economics and money.
NatWest MoneySense: An online resource offering free and impartial financial education for 5-18 year-olds, helping them learn about money.
Barclays LifeSkills: Created to help young people get the skills and experiences they need to enter the world of work, including financial skills.