3. Money is scarce
That scarcity is what makes people do crazy things to get it. Since it doesn’t grow on trees, it must be wisely spent because once it’s gone, your options are also gone. Learn to live on less than you make and your options increase exponentially.
4. Opportunity costs can be high
There are endless ways to spend your money. Spending it all on fun and games means you don’t have it to spend on food and clothing. Once your cash is spent, your opportunity to spend it on something you may need is gone.
5. Handle those “live” paychecks with care
If you don’t direct deposit your wages, but cash your paycheck instead, you will spend it all. Trust me. You will. Get that checking account set up and directly deposit your earnings there.
6. There is no free lunch
Nothing in life is free. Teens have generally spent their entire lives having things handed to them: food, clothes, necessities, and wants. It can be a shock to realize that it takes $75 to fill up your tank with gasoline and you only get to go 400 miles.
7. Time is money
Learn the skills of time management. You only have so many hours per day to get things done and you have to prioritize your time like you prioritize (budget) your dollars. Get to work on time since you aren’t paid until you clock in. Make your time at work effective and do your job to the best of your ability since your employer is paying for your time there.
These aren’t the only lessons teens need to learn but these are a good start. If we can manage to instill lessons such as these in our children and teenagers, they may stand a much better chance of succeeding financially, or at least much earlier, than we did.