Top 10 Financial Tips for Teens

G. Cruz
September 15, 2021

So, you’ve entered the workforce, and now you’re so rich you have to pay taxes. That may not be the situation for you, you may be just wondering how to get good credit, or how to maintain a steady lifestyle/income. The ordinary teenager may find taxes and credit to be perplexing. How do I go about doing these, and how do I make sure I have good credit? If that sounds like you, I’ve got some wonderful news for you. I’ve created a list of helpful financial advice to help you get through tax season and beyond.  Here are ten financial strategies to help you get ahead:

  1.  Keep track of your financial income– Your financial income is required to: make a budget, apply for credit inquiries, and understand what tax bracket and rate you are given.
  2. Read the fine print– Make sure you read the fine print on your credit card because different types of actions, such as purchases or cash advances, may have different interest rates.
  3. Avoid too many credit inquiries– Hard inquiries have an influence on your credit because they can reveal information about your financial situation and how well you manage your current debt. When you apply for a lot of credit at once, it could indicate that you’re in a bad financial state, which lenders don’t like to see.
  4. Make a budget– It assures that you will always have enough money for the things you require and value. Following a budget or spending plan might also help you stay out of debt or get out of debt if you’re already in it.
  5. Don’t lie on your tax return– If you want to not go to jail, DON’T LIE ON YOUR TAX RETURN! If you are caught doing so, you could be arrested, and forced to pay back the amount of money you owe.
  6. Keep low balances–  Lowering your credit card bills will help you boost your credit score. Maintaining a balance well below your credit limit indicates that you routinely handle debt well and can help you boost your credit score.
  7. Know your tax bracket– Knowing your tax bracket might come in handy in a variety of situations, including when opening new accounts. While your tax bracket won’t tell you how much you’ll pay in taxes, it can assist you in determining the tax implications of financial decisions.
  8. Explore all types of credit– Having several types of credit is an important element of your credit score since it demonstrates to lenders that you can appropriately manage various sorts of debt. However, it’s not always apparent how many accounts of each credit kind you’ll need to show that you have the correct mix.
  9. Pay your bills on time– Paying your bills on time is a crucial part of regaining control over your finances. Knowing when your payments are due and making it a habit to pay them on time can relieve stress, save money, improve your credit score, and allow you to obtain lower-interest credit in the future. 
  10. Monitor your credit report– Examining your credit history and ratings might help you have a better understanding of your current financial situation. Checking your credit reports on a regular basis might help you become more aware of what lenders may observe. Checking your credit reports might also help you find out if any information is incorrect or insufficient.

Sources: https://mygreatlakes.org/educate/knowledge-center/credit.html

https://www.taxslayer.com/blog/teen-filing-first-tax-return/

https://nataliebacon.com/how-to-create-budget/