Your Fresno financial advisor will discuss how following these money habits can put your children ahead when they enter the real world—they might even become millionaires before 40!
Saving $500 might seem tough for a high schooler, but it’s crucial. This money habit helps handle unexpected expenses like flat tires or cracked phone screens. There are many ways to save:
Save allowance, birthday, or holiday money
Sell unwanted items online or at yard sales
Offer services like babysitting or lawn care
Get a part-time job (if schedule allows)
Ask parents for paid household chores
Tutor other students
Work full-time during summer breaks
Students should budget their earnings and save as much as possible in a dedicated account. It may be challenging at first, but reaching the $500 goal is rewarding.
Interestingly, a research team study found that students who took a personal finance course in high school were three times more likely to prefer $500 in the bank over a smartphone.
Even teenagers can have debt—car payments, credit cards, or money owed to parents or friends. This money habit, the debt snowball method can help them become debt-free:
Stop accumulating debt (cut up credit cards)
List debts from smallest to largest
Pay minimum on all debts except the smallest
Put extra money towards the smallest debt
When smallest debt is paid, roll that payment into the next smallest
Repeat until debt-free
Being debt-free gives students an advantage in future financial planning and helps them cash-flow their college education.
When it’s time for students to buy their first car, they should pay with cash.
A decent used car costs about $3,000. By saving $300 monthly, teens could buy it in 10 months, or in 15 months at $200 monthly. Saving before buying makes the purchase more meaningful and encourages responsible driving. Without car payments, they can focus on their next financial goal.
Determining whether you can truly afford a particular purchase is a critical step in making wise financial decisions. Your financial advisor Fresno, Ca understands that by understanding your financial situation, assessing your income and expenses, considering your financial goals, and creating a budget, you can confidently evaluate whether a purchase aligns with your overall financial well-being.
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!
Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.
