what’s happening it’s chahat sharma here and in today’s article i’m gonna be talking about the top five personal finance tips for teenagers and i think this is gonna be a very valuable article for you to read i’m gonna talk about what i think is the most important things when it comes to personal finance and career and all that sort of thing that i wish i knew when i was that age.
top five personal finance tips for teenagers
alright so number one on the list this is going to be kind of an obvious one i guess but get a job right and i don’t mean to sound like a boomer when i say this i sincerely mean this i think getting a job even if it’s a crappy entry-level job and you only work like one day a week or anything like that it is going to be so valuable to you in so many different ways first of all getting a job even if you just work.
one day a week is going to be a lot of extra money especially for a teenager and that’s really nice because you are gonna have the freedom to pay for things on your own you’re not gonna have to rely on your parents and successful people in life have the ability to not have to rely on others so getting a taste of that independence as early as you can is going to be extremely valuable on its own but i would say the money itself is the least valuable thing when it comes to getting a job first of all you are going to get work experience.
which is going to be incredibly valuable for the future i know people who have gone all the way through high school all the way through college and they still have never had a job and they go into the real world in an entry level job and they do not have any idea what they’re doing there’s a lot of things that you’re gonna learn all the way from really basic stuff like how to use a fax machine.
how to use a phone um all the way to more subtle things that are kind of like soft skills that are hard to describe but it’s basically just being a professional being somebody who is effective but also fun to be around at work and even if you get a job that you absolutely hate it’s going to set a low bar for jobs and when you get a good job or maybe even just a normal job you’re going to feel grateful for it and even if you’re somebody who never plans on getting a job you want to be an entrepreneur and employ other people being able to put yourself in the shoes of somebody that you would employ because you were once an employee yourself is going to give you a completely different perspective.
when it comes to being a manager and a leader you’re going to make a much better leader a much better manager because of the fact that you have that perspective you have that empathy because you have been in their shoes before and that’s going to lead to your employees liking you a lot more wanting to work a lot harder for you and of course that will end up making you more money but more than that it’s also just going to be a more enjoyable work environment and if that all wasn’t enough having that work experience on your resume before you graduate college or going to the real world is gonna make you look just so much more appealing to a hiring manager or a business owner who might potentially hire you for your first entry level position right so getting a job um doing side hustles as well awesome i think um i guess that’s kind of along the same lines.
i’m gonna go ahead and just put them in the same category side hustles are great as well because again you’re earning money um side hustles are a little bit more entrepreneurial i would say side hustles are almost like entrepreneurship with training wheels but all of these things are great because they are showing that you can take initiative they’re showing that you can earn your own money and be more independent so even if you’re just doing you know a part-time shift every two weeks something like that something super basic it doesn’t take up very much of your time do it absolutely do it number two on the list is going to be for those of you who want to go to college which you know my website.
Get good grades
a lot of it is about college degrees so a significant amount of you probably do and that is to get good grades in high school and also do well on these standardized tests like the act and the sat if you want to go to college now the reason that i stress this getting good grades is it’s not so much that you learn so much in high school and it’s like so important for you to get good grades it’s just simply the fact that the best scholarships are going to be available to those who get good grades and sometimes also do well on those standardized tests.
some of the scholarships are even going to be full ride which means you don’t have to pay anything but a lot of them are going to be very very high like 10 000 a year right over four years so that’s 40 000 overall and these are honestly just the low hanging fruit of scholarships these are the ones that are the easiest to get and to be honest with you guys i know it might seem like your high school classes are hard but they aren’t you just really need to learn study skills it’s going to get much more difficult in college and it gets even more difficult after that in grad school and as it gets more difficult you’re going to learn these new study skills and then that’s going to make it manageable and then eventually.
it’ll become kind of easy for you you’re going to look back on high school and you’re going to be like that was a piece of cake one author who really helped me to kind of like get my study style and my study skills down in high school was cal newport he has a book called how to become a straight a student highly recommend that book he also has a book it’s called how to win at college.
i also got that one as well early on in college you can get that one too because it kind of talks about study skills as well but those two books are very easy reads you can read both of them within a day and they have just some amazing tips not every tip is going to apply to you but many of them will and they definitely helped me out quite a bit so those are two great books when it comes to getting good grades and then as far as the act and the sat go the biggest thing is to just start studying early there’s good books in terms of like what to study for the sat and the act i would recommend looking at online forums of other people.
who are trying to score really well on the sat and the act and kind of seeing what they’re studying what their experiences are i don’t remember the exact score that i had when i took the a ct but i remember the first time i took it i didn’t really try and i scored in the low 20s and then um after you know studying and stuff like that i ended up scoring in the 30s okay it was like low 30s but yeah having those good grades and then sometimes colleges want you to also have good scores on the standardized tests is just going to open up a lot of doors for you many colleges are going to offer you.
you know ten thousand dollars a year twenty thousand dollar a year scholarship some of them even full ride scholarships and so that is just the low hanging fruit on top of that you should be applying for scholarships especially in your junior and senior year even if they’re just 500 1 000 1 500 ones those little ones really do add up and so this is a great way to pay for most of your college and set yourself up for success because the average person is taking out nearly 40 000 in student loans and it takes them 20 years to pay them off so if you can just avoid that whole situation in the first place that is going to be great for you number three on the list is to start investing.
you might think well you can’t start investing until you’re 18 right actually there are ways for you to start investing even as a minor and basically what you do is you open up a custodial account and a custodial account is where you get your parents to sign off on it and you are trading on behalf of them and you know it might be your money that you are investing but it’s technically a custodial account under your parent or maybe some other person that is technically your guardian but yeah investing as early as possible even if it’s just a tiny amount of money you know 50 bucks 100 bucks 20 bucks even in with some of these apps absolutely.
a great thing to do it’s going to get you started it’s like almost a snowball effect because when you start investing and you experience the power of compound interest it’s going to get you excited about opening the app saying oh my gosh my investment went up 10 20 then you look at the projections and you see if i invest this much over this period of time i’m gonna end up being able to retire at this age and it just gets you really excited and that excitement gets you to want to make more money and it also gets you to want to save that money that you make so you get into things like saving and budgeting and then on top of that you end up investing even more and so it’s this cycle that’s actually a really good thing where you kind of just get addicted to investing and making money and that ends up being a very good thing because then you can retire early now number four on this list is an extremely practical tip that i don’t think enough people talk about and that is just try out a bunch of different things to see.
Extremely Practical Tip
what you like and this is not only in terms of jobs but it’s also just in terms of life in general just like try out a bunch of different stuff and see what you genuinely enjoy so for instance a lot of things in my life that i really enjoy i almost did them on accident right it was like a friend was just like hey do you want to come with me i’m doing this or that and i had nothing to do so i went with them and you know i did whatever they were doing and then i just really enjoyed it and so you should really say yes to a lot of these things try out different stuff.
try skiing try playing basketball try you know try all these different things try different arts and crafts and see what you truly enjoy and really what you want to do is try to notice the difference between things that temporarily make you happy for a split second and this you know example this would be like eating ice cream drinking soda versus things that make you happy on a deeper level and a lot of the time it brings you lasting joy right so one of the things i absolutely love doing is i love reading about history right i love reading history books.
i love listening to podcasts it’s definitely one of my passions in life i really enjoy doing it it’s probably something that 90 of the people reading this are like that sounds incredibly boring i would never want to do that i wouldn’t wish that on my worst enemy but it’s something i absolutely love but that’s actually kind of what you want to find especially in your career you know there’s the concept of .
which i’ve talked about quite a bit which is basically just balancing practicality with passion another way to look at it and i got this from naval ravikant who gives really good advice on money especially if you’re somebody in the tech startup world he basically says do what seems like work to others but feels like play to you so that’s what you really want to find and that is actually a super deep sentence because when you’re able to do something that other people think is very difficult very tedious very hard but it’s actually it seems like play to you that gives you such a ridiculous competitive advantage over everyone else and that’s kind of like.
what this website channel is right like i really enjoy making articles i enjoy the entire process of making articles i’ve always been somebody who’s watched tv and i kind of noticed like oh they cut from this scene to this scene and in this scene they you know zoom in really fast in this scene they kind of zoom in slow and i’ve always noticed these different things and i’ve always wanted to make articles now of course this isn’t exactly like making a movie or a tv show it’s a little bit different but it’s the same general concept and i would have never known that this was one of my passions if i didn’t actually start trying to do it right get your cell phone camera out and start recording articles so it’s super important for you to try out a bunch of different things.
because you’re never gonna know whether you enjoy doing it until you actually try it yourself a huge mistake that so many people make is they see you know like a tv show for instance they see a tv show about doctors and it glamorizes the life of a doctor and they think you know what i want to be a doctor or maybe they even feel a lot of pressure from their family like oh i want to be a doctor because my family wants me to be a doctor but have you ever actually shadowed a doctor and seen what they do in real life have you ever seen.
what the real life of a doctor is on a day-to-day basis because that can be a great choice for some people but for many people it’s going to be a nightmarish job and that’s why you see ridiculously high depression rates and suicide rates with doctors in my opinion is because the expectation is so different than the actual reality so yeah super super important just especially at this time in your life when you’re young just to try a bunch of different things out to figure out what you like it’s kind of like your favorite food think about your favorite food you wouldn’t even be able to know that that is your favorite food unless you actually tried it in the first place but anyways number five on this list is going to be shoot for the stars but have a good plan.
A Good Plan
once you find something that you really want to do after trying out a bunch of different things shoot for the stars go for it again you want to try to find something that seems like work to other people but feels like play to you and once you’ve found that thing shoot for the stars on it right go for it but be smart about it right it’s usually not a good idea for you to just like if you’re working a job.
you don’t have any savings it’s usually not a good idea for you to just quit your job and go for whatever your goal is the average successful writer for instance in my opinion is probably going to take one to two years before they’re able to make a full-time income from website and the same thing works for all different types of business models it is going to take time for you to start making money same thing.
if you’re going for you know a dream job it’s probably going to take you some time to build up your resume before you can get into that dream job position in many cases you’re going to have to go through years and years of education as well so my advice to you is you know definitely go for your passions just be smart about it especially as a young person you can definitely accomplish just about anything but it’s going to take a lot of hard work and a lot of dedication and it usually also takes a long time so hope those tips helped you out check out my other articles right here i made them just for you go ahead gently tap the like button hit that subscribe button ring the notification bell and comment down below any thoughts comments criticisms etc that you have on the article and i will see you next time you