If you’re a teenager, you are in a very powerful position. Starting good money habits now will put you ahead for the rest of your life. Here are 8 money tips for teenagers.
I was not good with money when I was a teenager. I spent it on stuff like clothes and eating at the mall. If I knew as a teenager even a fraction of what I know now about money, I’d probably be retired. So let us help you avoid the mistakes we made with our money by giving you 8 money tips.
1. Understand The Power Of Time
You probably aren’t making a ton of money right now, but that doesn’t matter. What matters is time. And your money has a lot of it. Let’s look at an example:
At the end of your summer job, you have $1000. You invest it at a rate of return of 5%. You don’t contribute another cent for 50 years. At the end of those 50 years, you will have $11,467.49.