Financially literacy is undoubtedly necessary for overall success in life. It in in this light that it is important for teenagers learn about financial skills and actually use such skills. Parents must endeavour to teach their children these skills, while teachers reinforce the knowledge by incorporating financial literacy in their classroom talks. In the spirit of engendering this, we here present to you some of the financial concepts every teen must be familiar with-
Savings: It is important for teenagers to understand that it is important to save. There are many reasons why everyone should save, chief among which is the need to have financial security. When someone is financially secure, they will be able to take care of emergency situations they may come up. Meanwhile, asides being able to handle emergencies, a savings habit enables people to conveniently take care of basic needs without looking about for help. So learn to save.
Budgeting: It is important for teenagers to learn the importance of budgeting instead of spending without thinking through their expenses. Forming the habit of budgeting one’s expensive will help such person to not overspend. Moreover, the person will realize the importance of prioritizing instead of spending money on useless things. A good budgeting skill will help you become a good money manager which will prove useful to you when you start earning income and must spend while saving for rainy days.
Bank Accounts: Every teen should understand how a bank account works and the reasons why s/he needs to have a bank account. In the same vein, the need to learn the different banking services that are available to them, the charges and interests rates as well as which banks offer the best and most flexible banking packages for students. Also, teenagers need to learn how to deposit and withdraw money. In since we are presently in an age where technology aids banking a lot, they must know how to transfer money, use the ATM and make online transactions with their credit cards.
