Millions of teens, who just graduated from high school, will be going out into the real world. Have they been thoroughly prepared to handle their own money? Basically, the answer is no. In a government-sponsored test about money issues given to high school students, only 69% of the questions were answered correctly. Unfortunately, most schools do not teach financial management. With the current economy, it is even more important than ever for teens and young adults to get educated about financial matters.
A few of the most basic lessons include setting up a budget, creating an emergency fund, paying off credit card balances in full each month, and being watchful for identity theft. In order to set up a meaningful budget, it is best to track your spending for a few months to get a clear picture of what it is that you’re spending money on. You might quickly find some areas of spending to cut that can then be used to start saving for your emergency fund. Also, because your credit score is so vital, be sure to pay off your credit card debt in full each month and keep an eye on your statements for any signs of fraud.