5 Things Teens Should Be Taught About Money

FireWyrm

The Micawber Principle. Learn it.

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery."

enjoyyourshoes

1. The financial realities of the 'marriage contract'
2.Tracking your money daily & staying in the black
3. Accruing for none weekly/monthly costs
4.How compound interest works
5. Psychology of spending

Pincher

Money is an illusion.


Having a swimming pool just means you have to pay somebody to maintain it. It's much better to just turn up and use somebody else's. How much time can you spend on a super yacht anyway?


Once you accumulate beyond a certain point, you become a slave to it. You spend all your time just to avoid paying tax.


You need to give it away before you die anyway, otherwise the 40% inheritance tax really takes the biscuit.


So, the best strategy is to be fabulous beautiful, become a celebrity, and get invited to obscenely rich parties that somebody not so good looking has to pay for.


The young have already figured all of this out, which explains the religious attendance at tanning salons, nail parlours, and cosmetic surgery clinics.

Djene

Coming from someone who left their teens a few years ago here's mine. Sorry if they may be a bit of a repeat of some already posted.

1. Teens should be taught what debt is and how it's works. Too many people I know are thousands into overdrafts paying daft apr for things they probably didn't need. Same with credit cards, how they can be a great tool to build your credit history, but also a negative if you spend too much on them. Especially a high apr card that teens will get.

2. If you have money, never, ever let anyone know you do. Since I was 18 I've always had a few thousand tucked away, but I never let friends or anyone, know that I do. Money can make people very jealous, and some may try and take advantage at best. Act broke.

3. If you are a student, just because the bank offers you an account with a massive overdraft, that doesn't mean it's free money to be exploited for nights out and items you do need.

4. Saving is key, and one of the most important parts of personal finance. Always try and save what you can, and don't see left over wages or student money (sorry not sure what the name is EMA or SAAS I think) as money to be splurged on rubbish.

5. Don't fall for finance traps. Such as new cars or even silly expensive phone contracts. Just because you don't have to pay anything down, doesn't mean it's not going to be expensive, especially since they last for 2-5 years.