When Should You Begin Planning Your Finances?

Most teenagers don't make very much money, if any at all. I remember when I was a teenager not too long ago, I didn't get a part-time job until I was 16 and I was lucky if I made more than $50 a week. In addition to low income, teenagers usually have few expenses as well. They might have to pay for gas, and maybe car insurance, but not too much else besides they things they want.

When we get older, get full time jobs, and move out on our own, we begin to make more money and accrue more expenses. This is when finances begin to get more complicated. We have higher income, we pay for our homes and food, and we pay taxes. This is when we need to start planning our finances, right?

At this time, and for the rest of your life, you should plan your finances. You should make goals for yourself such as saving for retirement, buying a house, and paying for your kid's college. You should also be budgeting your money. Make a plan of how you will be spending your money every month and plan to save more and more if you can. It is the money you save here that you will use to complete your goals.

At this point in your life, you should be planning your finances, but you should actually start much sooner. Just because you don't make a lot of money at 16 or 17 years old and you do not have many expenses does not mean it is not a good time to start planning. It is actually the perfect time to start planning.

When you have less to plan, it is that much easier to do. Your goals will be different. They may include saving to buy a car and saving for college. You can still make a simple budget. You can control your spending and save more. In fact, because you have so few expenses, you will be able to save even more. You might feel that you should be able to spend your money on whatever you want. You should, but part of that want should be for your future. Even if you just save 10% of what you make as a kid, you can save a considerable amount.

By starting this early, or even as a kid, financial planning will become a habit. Millions of people get into trouble or fight because of money. These people probably didn't start planning their finances early, if they ever did at all. Whether you are 15 or 45, it is never too late, or too early, to start planning your finances.