Are you a spendthrift? Do you spend money lavishly? If your answer is Yes', you need to seriously control your finances for a planned and secure future. As teenager, you make certain mistakes while spending that you are not aware of. This is because adolescence is a stage when you don't have the proper knowledge of handling money. You repeat the same mistake again and again, just to fulfill your unnecessary wants. You are unaware of the value and importance of money. For you, it is very easy to spend the hard-earned money of your parents.
Parents at times may overlook your mistakes, but you as a growing teen and a gentleman of tomorrow, should know your responsibilities and basics of money management. Let's have a look on the typical mistakes that teens generally do.
1. Buy more than what is needed
It is very common in teenagers because they spend impulsively without knowing the actual need while buying certain things. They spend more on accessories, clothes, eating-out, movies, night-outs and things that give them pleasure. For them, their monthly allowance is never sufficient, as they spend on unnecessary things and demand for more money from their parents. Unfortunately, many parents during such situations become emotional and give money to their children and their overspending habits remain unsolved.
2. Purchase expensive brands to impress friends
Teens to attract friends make costly purchases. They want to impress their friends/relatives with their material possessions. Showing-off their status makes them feel good and on the top. This kind of attitude is generally seen in teens who have rich and sophisticated parents. Parents don't even give a second thought when teens ask them for a bigger amount.
3. Don't shop intelligently
Most teens are shopping freaks and shop to hang out with friends. They tend to purchase things that are not required. While buying mobiles, vehicles or other expensive items, they don't make an effort to do some research to get the items at reasonable prices. If the product is attractive, they just buy it. They overlook the functionality and durability aspect of the product.
4. Take debt for celebrating parties
People party on specific and special occasions such as birthdays, wedding anniversaries etc. But teens just need a reason to celebrate. They party even when they purchase mobiles, laptops, electronic gadgets, vehicle, etc. They unnecessarily take debt for giving parties.
5. Misuse credit cards
Some teens misuse their parents'/relatives' credit cards. They use credit cards to purchase unnecessary things. They know how to spend but not how to pay back. Often times, their parents pay the bill. Teens don't know how painful it is to pay the bill for things that are not worthy.
6. Spend more on unhealthy habits
Teens are prone to unhealthy habits, when they hang out with the wrong group of friends. They can get addicted to unhealthy habits such as smoking, taking drugs, consuming alcohol, etc. They usually want to eat or treat their friends at expensive restaurants/bars.
If you are committing above mentioned mistakes, try and avoid them as much as possible and try to control your expenses. Learn to handle your finances, at young age for a secured financial future.