Kimberly C. – Schurr High School

A budget is one of the most important money management tools you can teach a teen to use. It might come as second nature to adults, but for most teens, myself included, who are just starting to earn and manage money, it can be easy to overspend and hard to save. Before the financial workshop that Nuvision hosted, I already knew about saving as I’ve been saving up since my 8th grade. The main reason why I started saving up was because I wanted to start my saving up for college. I want to be the first generation in my family to go to a four-year college. You could say that I have some saving strategies of my own.

Being the fourteen-year-old adolescent with a limited income, I saw saving money as not only a necessity, but also as a way to demonstrate my individualism and maturity to my parents. Growing up as a middle-class citizen, I realized from a young age that money doesn’t grow on trees. I couldn’t get the Barbie that I always wanted and getting a new phone was a difficulty. I grew up in a family that viewed “money-pinching” as a lifestyle.
On Mr. Quevedo’s presentation I learned that building a budget can help teens track their expenses, avoid overspending, financing, inflation, and the basis of credit. I learned that credit score helps lenders, as well as a little bit about retirement. There are two types of people who retire: the baby boomers and those who retire at an early age. It’s not bad retiring at an early age because not everyone wants to work until they’re sixty-five. In fact, I didn’t know there was a wealth formula; it’s simple but I believe it works. Moreover, T learned that you have to be careful when you’re borrowing because it could get you to the debt zone. Not that it’s bad borrowing money, but do not make it a habit.

Some way young adults can become better savers is to follow these three basic categories of any budget: income, necessary expenses, and discretionary expenses. Income is any money he/she has coming in. Now his/her income can vary a lot from month to month but it could include money from an allowance, part time job, babysitting, and birthday gift etc. For necessary expenses this is for things they need to pay. For example, cell phone bill, equipment etc. Once his/her necessary expenses are subtracted from his income he can see how much he/her has left to spend on discretionary expenses. These are necessarily thing they want like concert tickets, movies, clothes. going out with friends etc.

Ultimately, a significant part of any budget is a saving routine. Setting aside just a bit of money for your savings is a valuable habit to acquire. Having discipline to regularly put aside money is hard enough for adults and learning the habit of saving early can make saving throughout your life easier. For me, I’m saving for college and that can be your reason too, but it all depends on you.