Hanna – Carson High School

hanna

“A penny saved is a penny earned”, l my mother would remind me. As I worked for my first job during the summer of my junior year, I was anxious to receive my very own paycheck. For the first time, I didn’t solely rely on my parents for my expenses, but I was earning my own money. At the end of the summer, I had saved about $700.00. But with my careless and profligate spending, that money disappeared within a blink of an eye. I was not committed in maintaining a healthy limit on my excessive spending. At the end of the summer, I barely had money to spend toward senior year expenses. In the past, I wasn’t aware on how to properly manage my money; it’s important that teenagers learn about financial literacy in advance to avoid the same mistake as I did.

Twenty two is the median age at which millennials started saving for retirement; however it’s never too early for young adults to begin saving. It’s important that they separate their spending and saving money, simply by opening their own savings account. People get carried away when they have more money, so having two separate accounts can minimize excessive spending. Most teenagers already own a credit or debit card, making it easier for them to shop online but making it more difficult to manage their expenses due to the idea of “invisible money”. But most don’t invest their money in a savings account. My mother recently opened a saving account under my name, since as a student, I will soon be working, earning my own money and enrolled in college. A savings account will allow money to grow faster and eliminate the temptation to spend it on non-essential items. Moreover, it’s a smart place to put your money for midterm and long-term goals, such as college, or an emergency fund. By saving $10 a day in a savings account for 30 years at 8% interest earns an individual a total of $447, 107. The Nu­ Vision presentation prompted me to begin thinking about my retirement fund, and where to initially invest my money. A useful, yet effortless way teens can manager their money is to keep track of their spending. The first step in saving money is to know how much you’re spending on daily basis. By keeping a small notebook of expenses, teens can easily reflect back to every purchase, whether it’s coffee, books, clothes, or gas. They can identify where their money goes towards and even eliminate unnecessary spending. It’s essential that adolescents develop good spending and saving habits now which will influence their adulthood. Teens need to rhetorically ask themselves before every purchase, is this a need or a want? Often times the definition of the two get blurred between the lines. A need is a necessity, vs. a want, something they desire to have. By distinguishing the difference between the two, teenagers will become smarter shoppers and will have the willpower to eliminate unnecessary spending. After gaining insight from the NuVision presentation, I now value the power of saving money to secure the retirement in the future.

“The single biggest difference between financial success and financial failure is how well you manage your money. It’s simple: to master money, you must manage money.” T. Harv Eker once said. As an adolescent , it won’t be too far long until I’ll be paying my own bills and maintaining my bank accounts. With the knowledge on the basics of credit, savings, and investing, I now understand the power of saving over time and starting early can truly pay off in the future. Within five years, I plan on being financially ready to secure the retirement of my future. For instance, investing in my emergency funds will allow me to save for a rainy day, and get by in case of car or house repairs, food, illness, or loss of job .I will ensure that I save at least 10% of my paycheck for my emergency funds. Not only that, but by paying my bills on time, I can refrain from accumulating debt. Also, maintaining a good credit score of 750 and above can signify that my financial situation is on the right track. Good credit can determine whether I’ll get a car, house, or student loan in the future. Overall, within the next five years, I’ll be sure to protect my credit score, save my money, all while investing it to successful and prominent future.