Young person’s guide to managing money
Perpetual Fostering’s youth ambassador Emily offers advice to help other young people manage their money and budget
The money skills that you learn when you’re young will help set a foundation for the financial challenges you may face in adult life. Even just learning the basics about saving and spending will establish good money habits that you will have for the rest of your life.
First of all, it’s good to start off with knowing how to save your money. Decide what you want to save up for and consider how much time it will take you to save this money. It can be helpful if you set yourself realistic goals so that you don’t feel pressured and that you know all the pros and cons of saving up. Even if you don’t have a clear idea of what you want to save up for, it’s always useful to set aside some money for any unforeseen expenses or if you accidentally overspend.
Now for the fun part, getting to spend your money! It’s nice to be able to buy that new game you’ve wanted for ages or that really cool t-shirt you saw at the weekend, but it’s important that you keep track of your spending. You should try to only buy things that you really need and be careful about impulse buys, what could seem great at the time, you might end up hating the next day.
One of the most successful ways to manage your money is budgeting. Budgeting is when you allocate a specific amount of money for certain areas of your daily life where you might need it. It is a very effective way to watch how much you spend, and if you get the hang of it now, it’s a skill you will be able to carry through to adult life.
So, just remember the three key points when it comes to managing your money; Saving, Spending and Budgeting!