The beginning of the new year is a great time to set new goals. Everyone is usually talking about their resolutions for the new year. The most common resolutions are exercising, save more and spend less, losing weight, eating healthier, enjoy life, and spend more time with family. Personal finance resolutions that aren’t common among teens, though. No matter time than now to start a new trend! Take a look at these suggested resolutions:
1. Open a Checking and Savings Account – If you do not already have a checking and savings account, consider opening them this year. Companies prefer using direct deposit to pay employees. Letting the money you earn go straight into your checking account can help keep you spending all of your hard-earned cash at once.
2. Transfer Money into Savings – Learning to save now leads to financial success later. Decide on a percentage you would like to save each pay period. The moment your paycheck, or any money, is deposited into your checking account, transfer the decided upon percentage into your savings. If you transfer the money immediately, you will be less tempted to spend it.
3. Give to Others – Giving to ourselves through savings is smart and feels good. Giving to others increases happiness. Not too sure? The internet is loaded full of articles about how tithing or giving to charities boosts the emotional well-being of the giver.
4. Start a Budget – Create a simple budget. The first two budget items can be savings and giving. Budget for entertainment, too, but be sensible. Your friends may think you are a bit different if you start talking about budgeting, but you can get them to create a budget, too!
5. Learn About Personal Finance – It doesn’t matter if you become the richest person in the world someday, you need to understand finances. Even millionaires live on budgets. Finance is a complicated subject and reading just a couple of books only touches the surface. Read as much as you can from different authors. There is a lot of information available, and it’s smart to get perspectives from different sources. PAFS has both a paper textbook and an online personal finance course, which can be found here.
Start with these resolutions and see how your year goes! Don’t give up if you fail in your goals. Keep trying! Failure leads to learning and learning leads to success!