Canada is one of the countries, which provide young adults with the opportunity to earn extra income. Teens as young as 15 years old can already work part time. Unfortunately, Canada has yet to teach personal finance in high school and because of this, many working teenagers may still be clueless regarding financial management.
If you are a young adult seeking to know more about handling your finances, fret not. Below are important financial tips which could help you out. They could easily be understood, and a fierce knowledge in math isn’t a requirement so you can apply them without difficulty. The tips are also useful for non-working teenagers, who also get regular allowance from their parents.
- Have Self-Control. A lot of parents have trained their children about self-control even at a young age. This is so they would not end up getting tantrums if they couldn’t get what they want. If you are one of these kids, then good for you. If you aren’t, it isn’t too late to start practicing discipline. This will help a lot when managing your finances because it will curb your fixation on spending. Ask yourself if you need the item or you just want it. There is a big difference between the two. If your answer is the former, maybe you can wait until you have saved up on the money you need to buy the item.
- Do not overuse credit cards. This is for teenagers who are given credit cards by their parents. If you are the one paying for the balance of your credit card, you might take into consideration when to use it. It is always advisable to pay the entire balance on one go so that you won’t have to pay unnecessary charges.
- Manage your own finances. Teenagers in Canada should start thinking long-term when it comes to finance. Some people might undermine your capabilities on financial management given your age. However, if you do not take control of your own savings, there may be devious entities that could take advantage of you. Read about personal finance and learn about it so you won’t be caught off guard by malicious entities or individuals wanting to help but do not have enough knowledge in the matter as well.
- Do accounting. You don’t need a degree for this. Accounting for your earnings and spending is fairly easy. Keep a record of your allowance and/or income then do some budgeting. This way, you will not have to deal with spending more than what you have earned. Writing your finances can also help you adjust your expenses. This will not only make your funds breathe but may give you the chance to save as well.
- Save, save, save. Saving has always been a vital issue when talking about finance. Your income may be scarce especially if you are starting your college life because there are many factors to juggle – rent, basic necessities, or tuition fees. However, you should always save some money in case you will need it on a rainy day. It does not matter how much you can save up every month as long as there is something you can set aside. Loans, although can temporarily help you, may cripple your finance sooner or later.
As a young adult in Canada, finance should not in any way scare you. It is a vital factor in your life as you spend, get allowances, or earn money. Take control over it and you will find that as early as this time in your life, you can improve your financial conditions.