7 Mistakes Teenagers Make in Managing Finances
In adolescence, everyone must have made the wrong decisions, especially in terms of managing finances.
So that this does not happen again, for those of you who are still in the age range of 18 to 21 years, stay away from these 7 mistakes teenagers make in managing finances so that their future financial conditions will be better.
Talking about managing finances before was not easy, especially for teenagers.
The reason is that at this stage, not a few of them still do not understand the importance of maintaining personal financial conditions, because they think they can still depend on their parents.
In fact, with financial literacy, you can learn how to manage finances properly as well as become a provision to deal with various emergency conditions that can occur at any time.
Teenagers’ Mistakes in Managing Finances, Even More Losers
But in the implementation itself, you may still make mistakes that even directly affect the contents of your wallet.
Instead of increasing income, they unconsciously waste money with their consumptive behavior.
Well, as reported by various sources, here are 7 mistakes teenagers make in managing finances.
1. Underestimating expenses
Young people really like discounts. Every time there is a big promo, it will be immediately invaded regardless of the amount of expenditure. In fact, this is one of the mistakes teenagers make in managing finances.
It would be nice if you think about the impact that will be obtained after spending money on things that are less important.
Even some of them are willing to use credit cards, which actually have extraordinary interest rates if not used properly.
2. Still think you don’t have many dependents
Another mistake teenagers make in managing finances is the assumption that there are still few dependents.
Indeed, in the age range of 18 to 21 years, almost all of your needs will be met by your parents. So it is very rare for you to spend money from your own savings.
But this is what actually makes you will not be an independent person and will continue to depend on your parents.
On the other hand, if you can change that perception, it is not impossible if your financial condition becomes more stable in the long term.
3. Don’t want to save or invest
Everyone even with student status who does not have their own income is strongly encouraged to save or at least invest.
The goal is to prepare future funds that can be used for urgent needs.
However, not a few young people are lazy to apply these two things, even though they have great benefits for their financial condition.
This is what is meant by the next financial mistake teenagers make, which often happens today.
However, it’s never too late to change this bad habit! You can start by setting aside some of your pocket money for savings.
In addition, you can also try to invest with small capital first. The problem is that now there are many financial institutions that provide investment services for customers with mediocre income.
So, there will no longer be an assumption that investment is only intended for the rich.
4. Not following the financial planning procedures that were made
Conditions like this are actually very normal, and this is also the fault of teenagers managing finances.
Imagine, maybe you have prepared a financial plan in such a way, by allocating some of your income to each of the specified needs.
However, because the initial intention is not so strong, plus the many temptations of online shopping , of course it makes you waver and forget the original purpose of financial planning.
To be able to overcome this, it is actually easy but it does require a firm stance.
Don’t repeat the same mistakes again, and be determined to keep following the financial planning procedures that have been made.
5. Mixing reserve funds with personal needs
Do you have a reserve fund specifically used for emergencies? If so, then you should separate these funds from personal finances that are used to meet daily needs.
Merging these two funds at once will also make it difficult for you to know the advantages and disadvantages of your own financial life.
So, don’t mix reserve funds with personal needs, because this is also a mistake for teenagers to manage finances.
6. Too dependent on credit cards
Anything in excess is certainly not a good thing. This also applies to those of you who may be dependent on credit cards.
Indeed, for some situations, a credit card can be a practical transaction tool.
However, if you use it too often to exceed the limit, chances are you have made your monthly payments to a minimum.
This is also what is often considered as a mistake by teenagers to manage finances.
If done continuously, it is possible that new credit debts can be paid off when you are 25 years old and over.
So, it’s a good idea to limit the use of credit cards and try to pay credit card debts on time.
7. Lazy to record expenses
Keeping track of expenses may sound easy for everyone. But in fact, not a few of us are lazy to do this, especially teenagers.
If it’s like this, can it be that in adulthood, financial conditions remain stable? The answer is of course no.
For that, don’t follow the bad habits you have and turn them into something useful.
If you want practicality, you can try some special applications for managing finances, such as Money Lover, Monefy, and Financius.
Not only makes it easier for you to find out the amount of expenses, using financial management applications can also teach you to be more responsible for all transaction activities that have been carried out, including expenses.