I, the eio Owl (alias E I Owl), wish you to live long and prosper.
The best way to do this is to get your mind around the financial realities of this world. Because this is not usually taught in schools, it is one of my aims to include it one way or another.
Believe me, to succeed in the current world, you need to become financially aware.
This really is the most important part of my website for students. Why?
Because you don't learn this at school!
And if you did learn this at school, you will forget about it!
And if you did learn this at school, and you didn't forget it, the chances are that you will not get around to using it!
Pay Yourself First
When you spend it, you are paying someone else. When you save it you are paying yourself first.
When you have saved enough, invest it, then your money will also be paying you.
Here is how it is done. Put 10% of everything you get into a savings account. Don't spend it, invest it! You may need a parent/caregiver to set the bank account up for you. In time your money will earn interest (the bank pays you for using your money). In time your interest will earn interest (your money starts to snowball - slowly). Think about it!, you are being paid while doing something else.
But wait there's more. Money in the bank is a "safe" option, but you can take your money out and invest it in the other main options - shares, and/or property (when you are legally able).
At this point, perhaps you will have trouble seeing beyond the next week, let alone the time when you leave school, and horror of horrors - retire.
Invest for the long term. You as future olds, wrinklies, etc, have the whole of your working life to prepare yourself for retirement. But what if you get run over by a school bus tomorrow? - you want to live life to the full, the here and now. But then again, what if you don't get run over by a school bus tomorrow? Think about it! You have to strike a happy balance between the here and now and the long term future. And if you do meet that school bus tomorrow - have a will prepared so that your hard earned savings do some good for someone.
Some definitions:
Asset - something that brings you money in. E.g. the family house does not bring money in, a house that is rented out does.
Liability - something that sucks money in like a black hole. E.g. the family home, family car. Note a car used as a Taxi is an asset!
Compound Interest - If you save some money in a bank, it will generate extra money (interest - what the bank pays you for you letting the bank use your money). Compound interest is where you leave your money in for many years/decades. The interest starts to earn interest etc etc.