If you’re a teen, this article is for you. Money is not only an important topic, it’s essential to crafting your future. Understanding how to use it effectively will have a major impact on your life. So how can you become a money whiz? 

What's in it for me?

People talk a lot about money and financial education, but really why should you invest your time and energy into them? Especially if your parents are providing for you, it can be difficult to understand the true weight of money management (and confusing to know where to start). At 18, you will be an adult and in charge of your own finances and financial future. As with learning any new skill, there will be plenty of mistakes to make along the way. It’s easier to make them now before they truly count later in life. Mistakes help you learn to make better decisions. The best way to prepare is to start now. 

How to be an expert at $$$

There are a few easy steps you can follow to be a money expert in no time. 

1. Practice

The best way to get hands-on money experience is to practice using money. First, you’ll need to open a savings account and checking account. A savings account is like a piggy bank where you store money long term, while a checking account holds money for convenient spending.

Second, get experience in as many ways as you can. Regularly use your debit or credit card, navigate online and mobile banking. Withdraw money from an ATM and budget it out. Take over the family grocery shopping to get a first-hand look at what items cost and different payment methods. Make a lot of mistakes; mistakes are how you learn. Make mistakes now, before you are in a situation where more is at stake. Understand that money has to be earned; it will run out if not properly managed. 

2. Money basics

Here’s a shorthand of some financial principles that will make getting started easier. If you have a job or allowance, get some practice managing your paycheck. A popular budgeting method involves breaking down needs, wants and savings. With this method, you save 20% of your earnings, spend 30% on wants and spend 50% on needs. Using this formula can be a great starting point at separating wants from needs and habitually saving some of what you earn. If you have a credit card, pay it off at the end of the month; responsible credit card use can help you build credit. Whatever you want to buy, ensure that you have the funds to cover it. Don’t be fooled by any flashy promotions online; if it sounds too good to be true, it is.

When it comes to saving money, there’s another benefit to your regular deposits; interest! The more money in your savings account or similar interest-bearing account, like a money market, the more interest—or money—you earn, just by keeping your money with that credit union or bank. And there are even more options at your fingertips when you turn 18; check out our high-interest checking account here. The more you save, the more you earn through interest.

3. Form a relationship with your credit union

Your financial institution is a lifelong partner on your unique financial journey. Credit unions advocate for their members’ financial wellness every step of the way. Become comfortable going to your local branch, calling in with questions or concerns. There are many ways a credit union can help you, from financial education and resources to tailored products and services. Forming a strong relationship early on will make it easier to navigate your finances. 

4. Become a lifelong learner

Learning about money management and finance is not something that has an end. It is a continuous journey as you enter new stages of your life and as goals change. Ask a role model for help, take any finance or money management classes available and check out our online learning modules that allow you to learn at your own pace. Students at Oswego High School can take advantage of Panther Credit Union, our student-run branch. The earlier you start, the more knowledge you will have at your side. 

5. Role models

Learn from people that manage their money well and have a healthy relationship with money. An ideal role model does not spend more than they earn, knows when to indulge in wants and regularly saves. What type of relationship do you want to have with money? It can be tempting to buy anything you want, but this mindset will leave you without money when you really need it. Identifying positive role models and asking their advice can have a big impact on your financial future. 

Money can seem like an overwhelming topic, but it doesn’t have to be. As a teen, you are in a great position to start learning early, gaining the experience and confidence needed to make wise financial decisions later in life. Practice managing your money, learn the basics and find role models you trust that can provide guidance. 

And as always, Earthmover Credit Union is ready to help you on your financial journey. If you have any questions or are interested in learning more about money and need somewhere to start, give us a call at 630.844.4950 or stop by one of our branches.