Teens Guide To Spending

As teens we have figured out how to spend money, that’s the easy part. But here are a few tips on how you can make your money go further and alert you to a few problems you might encounter.

First, you need to Know Your Needs Vs. Your Wants . When you have decided to make a purchase, where should you buy it and when? Check out the section on Shopping Choices - Stores & Catalogs and Researching & Buying On The Web. There might be some suggestion there you might not have thought about. What are the benefits of each of our buying choices and how can we obtain information about a product?

One of the first large purchases you may make as a teen or young adult is a car. Be sure to check out First Time Car Buying Tips For Teens.

Finally, when you do make a purchase you may encounter a problem when you need to pay for an item. Got cash? Great! Have enough money in the bank to cover the entire amount—go for it! However, if you need to "borrow money" such as putting it on a Credit Card Changes & Managing Credit Wisely, think twice. Understand what a credit card is and what financial obligation’s you are taking on when you make a purchase using a credit card. Every time you use a credit card you are building up your very own personal credit history. Credit Bureaus obtain this information and give you a score, a FICO score, (like a grade in school) based on how much of your credit you pay off, how long it takes you to pay it and whether you payments are received on time. When a company decides to lend you money in the future, your score will determine how much they will lend you and at what rate. The section Credit History & Credit Score (FICO) is something everyone should read, even if you are not using credit now.