Financial Literacy Tips for High Schoolers

You might not have a lot of experience managing money, even if your parents tried to teach you the value of money. But that’s why it doesn’t hurt to start dipping your toes into financial literacy sooner than later!

Good money habits can set you up for success in the future, whether you’re headed to college, starting a career, or have dreams of becoming an entrepreneur.

We’ve got a few financial literacy tips high school students can use to start off on the right foot.

Learn How to Set a Budget

Creating a budget is the first step you need to take in developing good money habits. Budgeting will get you in the habit of checking in on what you can afford, so you’re aware of where your money is going.

Start by tracking your income and expenses, including any money you earn from part-time jobs, allowance, or gifts. You probably don’t have bills to pay (yet!), but track anything you spend your money on, whether that’s lunch, a treat for yourself, and anything else.

Then, set financial goals for the short and long term. Do you want to save up to buy a new console? Maybe you want to set money aside for a down payment on a car, or want to have a little emergency fund if you’re planning on moving out anytime soon. Once you have goals you want to work toward, you can adjust your spending and saving to meet those goals.

Get Used to Saving!

Saving money is another key part of making financial strides. If you’re used to spending all the money you earn as you earn it, it’ll be harder to reach those financial goals you set for yourself.

It’s a good idea to set aside a percentage of your income for savings and build an emergency fund to prepare for unexpected expenses. If you have a part time job with 401(k) benefits, consider taking advantage of saving money in those accounts.

You won’t be able to access it until you retire, but it’s never too early to start having your money work for your future!

Manage Your Credit and Debt

Credit scores, interest rates, and types of debt can be confusing, but it’s essential to understand how they work. Building a credit history and managing the debt you take on responsibly will help you build a stronger credit history, which is important if you ever consider financing a car, buying a home, or other long-term investments in the future.

Paying bills on time, monitoring your credit score, and avoiding high-interest loans and credit card debt can help you manage debt effectively.

Explore Investing

Investing can be a great way to build long-term wealth, but it’s important to understand the risks and benefits.

If you’re interested in learning about investments, it doesn’t hurt to do some research online, talk to parents, peers, and others who have investments. There’s a lot to consider when you’re investing – different types, when you can and can’t access funds, how much risk you’ll be taking on, etc., so working with a professional is always a good idea.

Seek Out Financial Resources and Tools

There’s a wealth of information out there on the internet that can help you develop good money habits. Personal finance apps, books, and websites can provide helpful tips and tools to improve your financial literacy.

There are also plenty of YouTube videos, blogs, and other content to help you see how these tips play out in real world scenarios. Don’t be afraid to search specific questions online – there’s a great chance someone’s been through your situation.

The sooner you think about your financial future, the better. Now go out there and start exploring the options you have to make sure you’re set up for financial freedom in your future!