Heading back to school for another year of education? Let’s add some financial lessons to the mix. It’s time to make some savvy money moves. If youโre tired of living allowance to allowance, think youโre too young to start earning, or canโt resist spending your birthday money immediately, keep reading. Donโt worry, weโre not adding another class to your scheduleโjust a little financial homework. Here are 7 essential tips for high school students.
1. Explore Earning Opportunities & Be Wary of Peer Pressure
If you’re under 16, traditional part-time jobs might not be an option, but that doesn’t mean you can’t earn money. Babysitting, lawn mowing, and other small jobs can help you start your own mini business. If you’re over 16, seize the chance to earn your own money and gain independence.
At the same time, be mindful of peer pressure. Peer influence is everywhere, from classmates sporting the latest trends to influencers showcasing new products. By recognizing this, you can avoid spending money on fast fashion and “hype” products and instead focus on items with lasting value.
2. Open Accounts & Build Financial Literacy
Ready to move beyond the piggy bank? Open a checking and savings account to manage your money more effectively. Visit your local Penn Community Bank financial center with your parents to get started and ask about account minimums, overdraft fees, and understanding your monthly statement.
Financial literacy is an invaluable skill. Take advantage of classes at your high school or community centers or explore online resources to learn even more about money. Understanding key financial concepts now will give you a strong foundation for the future.
3. Learn the Basics of Budgeting
A budget is an estimate of income and expenses for a set period of time. Sticking to a budget is a crucial part of financial planning. It allows you to take control of your money to reach your financial goals. Learning this in high school with your first job will lead to future financial success.
4. Set Small Term Financial Goals
Developing good money habits is a breeze when you set it as a priority in high school. Getting the experience from setting small, achievable financial goals when you are young helps you meet and even exceed your long-term financial goals later.
5. Create a Savings Routine and Anticipate Future Expenses
Once you start earning, developing a savings routine is essential. Even if you’re not saving for a house or retirement yet, setting aside money for future goals like college or your first car is important. No amount is too small; start with just $10 or 10% of each paycheck.
College expenses can add up quickly. In fact, the average cost of college and tuition in the U.S. is $38,270 per student per year.[1] Start saving now for books, dorm essentials, or tuition to ease future financial burdens. You’ll thank yourself later for being proactive and financially responsible.
6. Manage Debt & Track Your Spending
Learning to manage debt early is crucial. While you might not have a credit card yet, borrowing money from friends or family can still lead to debt if not handled responsibly. Pay back any borrowed money promptly to avoid debt traps.
Budgeting doesn’t have to be complicated. Use easy-to-use budgeting apps to track your earnings, spending, and savings. Start with simple categories like “entertainment,” “dining out,” and “shopping.” Allocate a portion of each paycheck to savings, ensuring you’re always building your financial safety net.
ย 7. Don’t Put Too Much Pressure on Yourself and Have Fun
Managing your finances is important, but it shouldn’t be a source of stress. Set realistic goals and give yourself grace if you make mistakes. Celebrate your financial successes, no matter how small, and don’t forget to allocate some money for fun activities. Enjoying your high school years while learning about financial responsibility is a balance worth achieving.
Take Charge of Your Financial Future with Penn Community Bank
Ready to take control of your financial future? Penn Community Bank is here to help you every step of the way. Whether you’re opening your first account or seeking advice on managing your money, our financial experts are ready to assist. Get started and embark on your journey to financial independence. Let’s make smart money moves together and ensure a financially secure future!
[1] Education Data Initiative. โAverage Cost of College.โ EducationData.org. Accessed July 12, 2024. https://educationdata.org/average-cost-of-college.
