High school is a time filled with fun, friends and work. During this time, it is almost certain that you aren’t thinking about your financial future.
While this is completely normal, it is important that you start thinking about finances as soon as you can, as this will give you a great head start when you leave school and start working. Here are some things I wish I knew about finances when I was at high school, so that you can start preparing now:
When to start thinking about your financial future
The best time to start thinking about your financial future is right now. While you don’t need to rush into opening savings accounts and sorting through your receipts, you do need to start thinking about your finances.
The easiest time to start thinking about finances is while you are at high school. This is because you will be at an age where your finances aren’t very complicated. As you get older, it will become more difficult to understand your finances, as they will be more complex and there will be more things you have to sort out.
Start by talking to your parents about any savings accounts they may have for you, or any money you have received as gifts that they have kept for you. One of the easiest ways to boost your financial health is by placing any money you have into a savings account with a good interest rate, as this will slowly increase the amount of money you have in your account.
If you are thinking about going to college after you finish high school, make sure you research and understand student loans so that you know you can afford the repayments and understand how it all works.
Finance tips I wish I knew when I was younger
Now that you have started to think about your financial future, here are some tips about finances that I wish I knew when I was at high school
Saving is key: having a good amount of savings is a key way to ensure that you will always be financially stable. That way, if you ever run into unexpected financial difficulty, you will always have a back up plan. Make sure you open a savings account with a good interest rate and start paying into it as soon as you are generating an income. If you are worried about spending it, open an account that won’t allow you to access your savings for at least a year.
Understand how expensive everything is: once you have finished high school, you may want to go to college or buy your own house. Before you rush into anything, you need to understand how expensive everything is. If you move into your own house/apartment, you need to take everything into consideration. This includes food bills, utility bills and the cost of transport. It is important to understand how expensive everything is but it is also important to be a savvy shopper – for instance if you are shopping for a natural gas provider it is important to compare providers like scana energy so you can lock in the most affordable rate. Apply this to multiple areas of your life so you can get the most bang for your buck.
Avoid debt at all cost: although it can seem like an easy option when you are struggling for money, taking out loans can wreak havoc on your financial health.
Insurance is super important: as you get older and begin to own more assets, it is important that you insure them. Insurance is designed to cover the big, big moments in your life. Think about how you would afford a home flood, a heart attack or a major car accident. It may be expensive, but it is certainly worth it in the long run.
Although it might be daunting, it is important that you start thinking about your financial future when you are young, as it will set you up for the rest of your life.