As a Teenager: Should I Save My Pocket Money?
As a teenager, we often find ourselves in the midst of a dilemma - whether to save the money given to us or to spend it all on immediate wants and needs. The story of my brother and myself is a perfect illustration of the two approaches. My brother started saving all the money he received on birthdays and festivals from the age of three, while I often asked my parents to buy me things with my pocket allowance. By the time he turned 18, he had saved over 15,000 rupees, whereas I had accumulated nothing.
Managing Your Expenses Wisely
For teenagers receiving regular pocket money, saving can be a valuable habit to develop. By managing your expenses wisely, you can set aside a little every time you receive money. Unwanted or regularly recurring expenses should be minimized or eliminated. Occasional gifts and tips from elders can be accepted, and the amount saved can be used to stay away from habits or people who drain your finances. Make saving a habit and lifestyle from your teenage years. When you have enough, you can start a bank account and deposit your savings to earn interest. Over time, this habit will enrich you, even when you start earning.
Financial Mindset and Education
The mindset towards money management plays a crucial role. Many teenagers born into affluent families may not fully understand the value of saving and budgeting. If you have the right mindset and money management skills, you should be proud of yourself. If you are given the right amount only for specific needs and not for regular spending, there's no need to struggle to save. Enjoy your teenage years and spend on what you truly need. Worrying about saving money in this situation will not be necessary. When you learn to earn and get employed, this teenage experience will be your driving force to save, invest, and become rich.
Avoiding Debt and Enjoying Independence
Some teenagers may spend more than they have by borrowing or even stealing. They might appear rich by adopting the lifestyle of others but will be in debt. When you don't owe money to anyone, you are still richer than 70% of Indians. Save and invest as soon as you can, and be happy that you are on the right path. If your family is not well-off, focus on getting a good education and securing your future. Financial independence and responsibility are key elements of success and happiness. Recognize your efforts in gaining this knowledge and avoid falling into the trap of bad habits.
By following these steps, you can develop a strong foundation in money management that will serve you well throughout your life. Remember, the early habits you form in your teenage years can have a significant impact on your financial future. Embrace the importance of saving, and build a habit that will enrich your life and secure your financial future.