How To Better Manage Your Money

Managing money isn't as hard as it seems but it requires self-control and responsibility. Knowing when to spend and how to save is also very important. First, to manage money, you need to make some.
Most teens get their money from an allowance. Not everyone gets one, though, and your parents' beliefs or financial situation might mean you get little or nothing at all. Don't worry, there are many more opportunities available to you but you'll have to improvise. Try getting your parents to pay you for getting good grades, or for reading a certain number of books, or for doing various jobs around the house. You might even get some money from siblings, if you offer to do some of their chores.

If these options don't work then there is always a guaranteed way to make money by selling things. If your closet is full of stuff that you no longer need or want, consider selling them. Organizing a yard sale might be a good way to sell them fast or try selling online on EBay.
Sold all your stuff? There is only one option left and it is perhaps the most obvious way to earn money, get a job! There are many jobs you can find or create. You have more choices than just working at McDonald's or babysitting. Use your skills. Think about what you're good at and try to teach others. You might offer piano lessons, tutoring, or Spanish lessons. Maybe you can juggle and entertain at children's birthday parties. If you play an instrument, perhaps you could play at parties. If you write, you could try to sell articles to magazines or newspapers. Whatever it is, do that you like and do it well so that as your skills improve, you can make even more money.
Once you've made some money, start saving some. The best way to develop good saving habits is to make saving a regular part of your life, along with spending. Always save before spending. Whenever some money gets into your hands, from a job or your allowance or whatever, take your savings out immediately, before spending any of the money. So once you've removed your savings, you're free to spend the rest.
Also consider the "opportunity cost" of purchases. Opportunity cost is an economic term that refers to the cost of giving up one option for another. Imagine that you can either buy shoes for $100 or you can save the money towards a new computer. If you buy the shoes now, it might take longer to save enough money for the computer. First think about what you will be giving up, and then make a decision.
Whenever you have a significant amount collected, put it in the bank. It's important to keep a routine. Every time you get money as a gift, or a paycheck, save some in the bank. Make sure your bank offers compound interest. Compound interest is the sum of the principal and any previous interest in order to calculate total interest. In other words, your bank will pay you more for keeping your money with them. The more money you save the more interest you receive.
Using these tips and common sense you too can learn to manage your money wisely and start climbing your own ladder to financial success.

Learn more about this author, Zareen K.
Click here to send author comments or questions.

---

Add your voice

Know something about Excessive spending, buying and waste?
We want to hear your view. Write now!