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Why Are Finances Important?
Financial knowledge is important for teens because it helps them learn to use money wisely and take advantage of their biggest asset: time. The earlier you start, the more your money grows through compounding. This allows you to plant your money tree early and allow it to compound into a blossoming orchid that will provide you with financial security!
6 Key Principles for Financial Freedom
1
Goal Assessment
Determine why and what you are saving for. Short term or long term?
3
Budgeting
Manage income and budget for different categories of spending and saving
5
Savings
Strategies
Research and decide on the best ways to allocate, save, and invest
2
Understanding Debt
Understand the hidden power or potential burden of debt
Evaluate the strengths and weaknesses of your assets and their potential for growth
4
Value
of Assets
6
Put your plan into action! Start investing in areas that align with your goals
Invest
Did you know...
... if you start with just one penny and double it every day for 30 days, you’d end up with over $10 million! That’s the power of compound interest—your money grows faster over time.
... 39% of Americans don’t have even $400 saved for emergencies. Having emergency cash set aside helps you stay out of financial trouble when unexpected expenses pop up.
... the stock market usually grows ~6-7% per year, which is 10x more than a regular savings account. Let your money make money for you!
... the Discover credit card has no annual fee and gives you cash back on almost every purchase—a great option for teens looking to start their financial journey!
... most credit card companies don’t have an age limit, meaning you can start building credit early! Good credit helps you buy a car, rent an apartment, and get lower interest rates later on.
... more than half of Americans have less than $5,000 in savings. If you don’t save and invest regularly, it’s hard to build long-term wealth.
Where should you start?
Here are some of the best articles to read in order to start your financial journey!
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