8 Things Teens Need To Know About Money - Refresh Financial

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8 Things Teens Need To Know About Money

8 Things Teens Need To Know About Money                                          You’d think that by 2017, there’d be a robust and well-rounded financial element to high school curriculum, but unfortunately, there isn’t. Many high-school graduates leave the classroom without a healthy understanding of finances. Luckily, the Dime Turner blog is ready to help you out! Here are eight things teens need to know about money!

1. It can't be ignored

Turning a blind eye to stressful situations is a habit that all of us have to overcome, especially when it comes to money. Burying your head in the sand and not coming to terms with your financial situation is a recipe for disaster down the road. Get in the habit of looking at your money situation every day, regardless of how it makes you feel.

2. Debt is inevitable

There is no escaping, even hermits deep in the Canadian wilderness still owe money. From taxes to bank fees to interest payments and MSP premiums, Canadian are going to owe money. Pay what you owe because it will all increase if you don’t.

3. Build credit as soon as possible

When you’re a legal adult credit opportunities will open up to you. You can get yourself a credit card and take on utility accounts such as your wireless bill or your internet bill. These are things you should do, even if your parents are still paying your wireless bill. Putting bills put in your name will enable you to start building a credit history which will help you exponentially as you get older and are looking at buying a car or house. Even finding meaningful employment or renting properties will sometimes hinge on your credit history.

4. Debt isn't the only way to a good credit score

Although it’s a good practice to start utilizing a credit card as soon as possible, you should be smart on how you use it and limit what you use it for. Using your card to buy your necessities and paying the balance off in full every month will prevent any accumulated balance and interest, plus it will reflect positively on your credit report.

5. Read the fine print

Protect your credit score by ensuring that you carefully read all of the fine print associated with any new credit product. Free trials end and sneaky fees soon find their way on your bills. Not fully understanding what you’re getting into by signing the dotted line is a great way to land yourself in trouble in the future.

6. Identity theft can happen to anyone

The best you can prevent falling victim to identity theft is to keep a close eye on all your accounts, credit statements, and your credit report. Regularly checking up on these things can minimize any potential damage that could happen. Another useful habit is to change passwords regularly and being extremely cautious about giving your personal information online.

7. Create a budget for yourself

Getting into the habit of budgeting will pay off in spades down the road. It’s best to not rely on luck if you want to experience the financial stability that you desire. Budgeting is so often overlooked, and yet it’s absolutely a key to unlocking a stable financial future.

8. Start saving now

You’ve heard this advice from likely everyone in your life, but there’s good reason for it. We’ve been on this planet long enough to learn the true value of saving, even if we’ve made the mistake of not doing it ourselves. There are many things you can spend your money on today that won’t benefit you for the future as saving can.

As you get older, financial planning can get more and more complicated. Right now, it’s not so complicated and these lessons can ensure that even as things get harder to navigate, you’ll be in a great position to do so. Set yourself up for success now, don’t wait like so many of us did.

What do you think? What are some other important lessons teenagers should learn about money? Let us know in the comments!


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